Here’s What Triggered the Latest IRS Shakeup — And Why It’s Blowing Up Fast

April 9, 2025

Washington, D.C. – The Internal Revenue Service (IRS) is in turmoil once again, with Acting Commissioner Melanie Krause announcing her resignation on April 8, 2025, amid a controversial new policy to share undocumented immigrants’ tax data with Immigration and Customs Enforcement (ICE). Krause, the third IRS leader to exit since President Donald Trump’s January 2025 inauguration, cited irreconcilable differences with the administration’s direction, particularly its immigration enforcement agenda, as the reason for her departure. The shakeup, detailed in a Washington Post report on April 9, has conservatives cheering the policy shift while slamming Krause for what they see as a refusal to uphold the law.

Krause’s resignation follows a memorandum of understanding between the IRS and the Department of Homeland Security (DHS), filed on April 7, 2025, which allows ICE to access tax information of undocumented immigrants who have not complied with final removal orders, per The Guardian. The agreement, signed by Treasury Secretary Scott Bessent and DHS Secretary Kristi Noem, targets individuals filing taxes under Individual Taxpayer Identification Numbers (ITINs), a practice undocumented immigrants use despite lacking Social Security numbers. “She no longer feels like she’s in a position where she can impact the decision-making,” a source told the Post, adding that Krause believes “some of the decisions that are being made now are things the IRS can never recover from.”

The policy shift aligns with Trump’s hardline immigration stance, which has already seen mass deportation flights, including one on March 30, 2025, carrying 17 MS-13 and Tren de Aragua gang members to El Salvador, as reported by the White House on X (@WhiteHouse). But it’s a stark departure from IRS tradition, where tax data has historically been shielded, per a 2025 Vanity Fair report. Krause, who took over as acting commissioner on February 28 after Doug O’Donnell’s retirement, opted for the Trump administration’s deferred resignation program, a move conservatives on X, like @MAGAForce2024, see as a principled exit: “At least she’s not remaining in her post and fomenting chaos behind the scenes like we saw during the first Trump presidency.”

The rapid turnover—three leaders in three months—is “unprecedented,” a source told the Post, noting the chaos exacerbated by Elon Musk’s Department of Government Efficiency (DOGE), which has pushed for deep cuts at the IRS, including 6,700 layoffs in February 2025, per Raw Story. Treasury officials reportedly bypassed Krause to expedite the data-sharing deal, a move that has drawn ire from immigrant rights groups like Centro de Trabajadores Unidos, who argue it violates the Internal Revenue Code’s confidentiality protections, per The Guardian. On X, @PatriotPulse celebrated the policy: “Finally, the IRS is doing its job—helping ICE deport illegals who’ve been gaming the system.”

For Trump supporters, Krause’s exit is a win, signaling the administration’s commitment to rooting out illegal immigration, even if it means shaking up federal agencies. But the speed of the IRS’s transformation—and the ethical concerns it raises—has made this a lightning rod issue, with the fallout only beginning to unfold. As @America1stMAGA put it on X, “This is blowing up fast, and it’s about time.”

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