Acting IRS Commissioner Melanie Krause is stepping down following tensions with the Trump administration over a controversial data-sharing plan with Homeland Security and ICE. The issue centers on the administration’s push to access IRS records to identify and potentially deport undocumented immigrants. Krause’s resignation follows a series of leadership changes at the IRS since Trump took office, with each commissioner facing pressure related to the administration’s immigration priorities.
Trump Administration Pushes Immigration Crackdown Using IRS Data Amid Legal Confidentiality Concerns
Since taking office, President Trump has aggressively prioritized immigration enforcement, often through executive orders. His administration recently attempted to invoke the Alien Enemies Act of 1798—a wartime statute granting broad powers to detain or deport non-citizens. Although a federal court blocked the move, the administration has continued to pursue legal avenues to enable deportations, intensifying tensions within federal agencies like the IRS.

The core controversy involves a proposed agreement allowing ICE to cross-reference IRS data, including names and addresses, for enforcement actions. Typically, IRS data is protected under strict confidentiality laws, with criminal penalties for improper disclosure. A court document linked to the agreement claims the information would be used only for judicial or investigative purposes, but critics argue the scope and legality of such use remain murky.
Bipartisan Backlash Grows Over IRS-ICE Data Deal Amid Legal and Ethical Concerns
Krause’s planned departure has sparked significant political criticism. A Treasury spokesperson commended her leadership during a time of modernization but emphasized the importance of breaking down data silos for government efficiency. Meanwhile, Democratic lawmakers and immigration advocates condemned the agreement. Representative Jimmy Gomez and Senator Jacky Rosen expressed outrage, asserting it could undermine decades of trust between immigrant communities and the IRS.
Legal experts and immigration advocates warn the memorandum of understanding may conflict with federal laws protecting taxpayer information. Aaron Reichlin-Melnick of the American Immigration Council noted the agreement appears to violate past interpretations of IRS confidentiality rules. The outcry has prompted calls for congressional hearings, as critics demand accountability from both the Treasury Department and DHS for potentially misusing sensitive taxpayer data.