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.
His planned departure comes nearly a week after the Trump administration initiated layoffs of thousands of agency workers and following an attempt by personnel from the Department of Government Efficiency to access taxpayer data.
Leadership Transition at the IRS
O’Donnell, with a four-decade tenure at the IRS, assumed leadership in January after President Donald Trump signaled his intent to replace then-Commissioner Danny Werfel. His exit occurs during the tax-filing season for millions of Americans.
New Chief Operating Officer
Melanie Krause, the current chief operating officer at the IRS, will serve as the interim chief succeeding O’Donnell.
It remains unclear how O’Donnell’s decision correlates with recent disruptions at the agency.
Agency Restructuring
Last week, the IRS laid off over 6,500 employees as part of a government downsizing effort led by Elon Musk. Additionally, a DOGE member associated with Musk sought access to IRS systems but is restricted from viewing individual taxpayer information per an agreement between the Treasury Department and the White House.
Previous Leadership Roles
O’Donnell previously served as acting commissioner in 2022 and 2023 before Werfel's confirmation. He resumed the acting commissioner position last month post-Werfel's resignation on President Trump's inauguration day.
President Trump's nominee for IRS commissioner, former Rep. Billy Long (R-Mo.), awaits Senate confirmation.