Acting IRS chief to quit following immigration deal with DHS: report

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The acting commissioner of Internal Rent Revenue Service plans to conclude an agreement with the Ministry of Internal Security to allow ice to access taxpayers to locate illegal immigrants subject to expulsion, according to reports.

Melanie Krause, who will participate in a deferred resignation program offered to IRS employees by the Trump administration, was bypassed in the agreement signed Monday between the Treasury Secretary Scott Bessent and the interior security Kristi Noem, the Washington Post reported, citing people familiar with the issue.

Krause, who learned of the agreement after the Treasury Department published details at Fox News, also had disagreements on the future management of IRS, the sources added. She will be the third leader of the IRS to leave the agency so far this year.

“She no longer feels as if she is in a position where she can have an impact on the decision -making that occurs,” said a source at the Washington Post, which reported that Krause did not feel able to postpone the changes that the Ministry of Government Efficiency has brought within the agency. “And [she believes] That some of the decisions that are taken now are things that IRS can never recover. “”

IRS and DHS conclude a historic agreement to help the pursuit of illegal immigrants subject to expulsion

Irs

The Internal Building Revenue Service (IRS) is visible on February 20 in Washington, DC (Katopodis Tasos / Getty Images / Getty Images)

Krause should now leave IRS on April 28, according to The Wall Street Journal. The news of her resignation comes less than a week before the tax day.

“We are also decomposing silos of data which, for too long, are about to identify waste, fraud and abuses and translate criminals into justice,” the Treasury department told the newspaper. “We wish Melanie on her next effort.”

The Treasury Department did not immediately respond to a request for comments from Fox Business on Wednesday.

The Trump administration had tabled a memorandum of understanding Monday evening with a court to create railing and an IRS ice application process for additional criminal investigations illegal immigrants who failed or refused to leave the United States 90 days after a judge made a final dismissal order.

The agreement would allow ICE to submit the names and addresses of illegal immigrants to the IRS, which could then overlap the tax files of these immigrants and provide the immigration agency with current address information.

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The secretary of the Treasury Scott Bessent and the secretary of the DHS, Kristi Noem.

The secretary of the Treasury Scott Bessent and the secretary of the DHS, Kristi Noem, who signed the agreement this week, according to the Washington Post. (Getty Images / Getty Images)

“The internal in return for service and the application of immigration and customs have concluded a memorandum of understanding to establish a clear and secure process to support the efforts of the application of the laws to combat illegal immigration,” a spokesperson for the Treasury Department in Fox News in a press release.

“The bases of this memorandum of understanding are founded in the long -standing authorities granted by the Congress, which are used to protect the privacy of laws respecting laws while rationalizing the ability to pursue criminals,” the statement said. “After four years of Joe Biden flooding the nation of illegal foreigners, President Trump’s greatest priority is to ensure the security of the American people.”

The Treasury Department is also determined to protect the privacy of laws respectful of laws, but a criminal exception forces the agency to help the police, said a senior official.

Ice operations in Texas

A man is held by federal agents while ice leads operations on February 24, 2025 in Cleveland, Texas. (Raquel Natalicchio / Houston Chronicle via Getty Images / Getty Images)

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“Under the direction of President Trump, the government finally does what it should have from the start: to share information through the federal government to solve problems” Internal security Deputy Secretary Tricia McLaughlin told Wall Street Journal.

Louis Casiano and Michael Lee from Fox News contributed to this report.

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