While we wait for a new Internal Revenue Service commissioner to be confirmed, the personnel carousel keeps spinning at the tax agency.
The first major change was Danny Werfel, who had served as the 50th head of the tax agency since March 2023. Werfel resigned his post in January after Donald J. Trump announced he wanted his own person in charge.
IRS Deputy Commissioner Douglas O’Donnell, a senior career IRS official, stepped into the opening as acting commissioner. It was O’Donnell’s second stint as the IRS’ an interim leader, also serving from November 2022 to March 2023 during the transition from Chuck Rettig, who was Trump’s first IRS commissioner, and Werfel’s appointment.
However, O’Donnell’s second time as temporary IRS chief was much shorter. Today, Feb. 28, was his last at the agency’s Washington, D.C., headquarters.
“The IRS has been my professional home for 38 years,” O’Donnell said in discussing his departure. “I care deeply about the institution and its people and am confident that Melanie will be an outstanding steward of the Service until a new Commissioner is confirmed.”
Third commish in two months: The Melanie to whom O’Donnell referred is IRS Chief Operating Officer Melanie Krause. She now will serve as acting IRS Commissioner until an agency head officially is confirmed.
Krause began her IRS career in October 2021 as the Chief Data & Analytics Officer. Since April 2024, she has been the IRS’ chief operating officer, after acting as deputy Commissioner of operations support since January of the same year.
As chief operating officer, Krause oversees the operations including the Chief Financial Officer; Chief Risk Office; Facilities Management and Security Services; Human Capital Office; Office of Chief Procurement; Privacy, Governmental Liaison and Disclosure; Research, Applied Analytics and Statistics (RAAS).
Treasury Secretary Scott Bessent said Krause’s experience, along with the agency’s leadership team, “are well positioned to serve during this critical period for the nation in advance of the April tax deadline.”
Layoffs, DOGE inquiries: The critical period includes not just processing the millions of tax returns that will be filed through April 15, but also the circumstances surrounding the agency as a whole.
Billionaire entrepreneur, Donald J. Trump adviser, and the person who came up with the Department of Government Efficiency (DOGE) has been involved — how much depends on who you ask and whether the answer is under oath during DOGE-related court proceedings — in changes at the IRS and other federal agencies.
Last week, the IRS began firing staff nationwide. Around 6,700 IRS employees are expected to lose their jobs in this initial round of downsizing. It’s unclear as to how and how much that will affect return processing.
You also might find these items of interest:
- 4 ways to file your taxes for free
- Tracking down your federal tax refund
- Avoid IRS telephone hold time by going online
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