The third IRS leader in 3 months quits — with tax day just 6 days away

• The Treasury confirmed to BI that Melanie Krause, the IRS' acting commissioner, will be leaving the agency.
• She is now the third IRS leader to leave in the past three months.
• The IRS is set to undergo further workforce reductions in the coming weeks.

Another leader at the Internal Revenue Service will soon leave the agency.

A Treasury spokesperson confirmed to Business Insider on Wednesday that Acting IRS Commissioner Melanie Krause is leaving her role. The Washington Post reported on Tuesday evening that Krause is participating in the agency's second deferred resignation program, which would give her paid administrative leave through the end of September.

"Melanie Krause has been leading the IRS through a time of extraordinary change," the spokesperson said.

"As we focus on IT modernization and re-organize the agency to better serve the taxpayer, we are also in the midst of breaking down data silos that for too long have stood in the way of identifying waste, fraud, and abuse and bringing criminals to justice," the spokesperson added. "We believe these goals are critical to a more efficient government and safer country. We wish Melanie well on her next endeavor."

Krause is now the third IRS leader to leave the agency in the past three months. Former Commissioner Danny Werfel, who was nominated by former President Joe Biden, left in January, and Doug O'Donnell, another top executive, retired just a month later.

Two IRS employees told BI that Krause is still listed on the agency's HR system, and she likely will not be removed until the end of April, in accordance with the deferred resignation guidelines.

The IRS has started to implement its workforce reduction plans, and more staffing cuts are expected in the coming weeks. On Tuesday, the IRS sent an email to staff, viewed by BI, offering them three routes to leave the agency: They could participate in the deferred resignation program, take a voluntary separation incentive payment, or voluntarily retire early.

It followed an email sent to IRS employees on Friday, which BI viewed, confirming that the reduction-in-force plans have already begun and "each office will receive direct communication when their phase begins."

These reductions have been spurred by the Trump administration's DOGE office, under the de facto leadership of Elon Musk, which is seeking to reduce federal costs. Other federal agencies, including the Department of Health and Human Services and the Department of Education, have started terminating thousands of workers as part of their restructuring plans.

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