Doug O’Donnell, the acting head of the IRS, is expected to announce his retirement on Tuesday amidst turbulence at the tax collection agency, according to a source familiar with his plans.
Leadership Changes at the IRS
His planned departure comes nearly a week after the Trump administration initiated layoffs of thousands of agency workers and amid efforts by the Department of Government Efficiency to access taxpayer data.
O’Donnell, with a four-decade tenure at the IRS, assumed leadership in January following President Donald Trump's decision to replace former Commissioner Danny Werfel. This development occurs during the tax-filing season for millions of Americans.
The New York Times first reported O’Donnell’s retirement on Monday night, signaling a significant shift in IRS leadership.
Interim Leadership Appointment
Melanie Krause, the current chief operating officer at the IRS, will step in as the interim chief succeeding O’Donnell.
The exact reasons behind O’Donnell’s retirement in light of recent agency disruptions remain undisclosed.
Last week, the IRS downsized its workforce by more than 6,500 employees as part of a government downsizing initiative led by Elon Musk.
Recent attempts by a member of Musk’s DOGE to access sensitive IRS systems raised concerns, although an agreement between the Treasury Department and the White House ensures the protection of taxpayer information.
Previous Leadership Roles
O’Donnell previously served as acting commissioner in 2022 and 2023 before Werfel’s confirmation. He resumed the role of acting commissioner last month following Werfel’s resignation on President Trump’s inauguration day.
President Trump’s nomination of former Rep. Billy Long (R-Mo.) as IRS commissioner awaits Senate action, with no significant progress to date.
For updates on this evolving story and its implications on the IRS and taxpayers, stay tuned.
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