Disagreements over the agency’s direction also factored into Krause’s decision to leave, the people said.
Losing three agency leaders in three months is “unprecedented,” one of the people said. “I don’t think we’ve seen anything like this at IRS.”
Treasury Department officials in recent days sought to circumvent IRS executives so immigration authorities could access private taxpayer information, the people said. Those conversations largely excluded Krause’s input.
Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi L. Noem signed an agreement Monday allowing the practice, although IRS lawyers had counseled that the deal probably violates privacy law. Krause learned of the deal after representatives from the Treasury Department released it to Fox News, the people said.
Krause also felt unable to push back on moves the U.S. DOGE Service was forcing through the tax agency, they said, including dramatic staffing cuts, a technology infrastructure overhaul and long-term IRS priorities.
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