Acting IRS Chief Resigns After Refusing to Comply With Illegal Immigrant-Sharing Deal
The acting head of the Internal Revenue Service plans to step down after disagreeing with the decision to share tax data on illegal immigrants with federal law enforcement.
Commissioner Melanie Krause will become the third IRS leader to leave the agency since the start of the year. The agency has been turbulent because left-wing ideologues have decided to follow their political leanings rather than their pledge to serve as non-partisan government employees.
On Monday, the IRS and the Department of Homeland Security finalized an agreement allowing taxpayer data to be shared with federal immigration authorities to assist in locating undocumented immigrants.
According to the Washington Post, officials from the Treasury Department, under which the IRS operates, had largely sidelined Krause recently as they pushed to grant immigration authorities access to private taxpayer information, likely because they knew she would oppose the agreement.
Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem signed the data-sharing agreement, despite warnings from IRS attorneys that the arrangement likely violated federal privacy laws, the report said.
“Melanie Krause has been leading the IRS through a time of extraordinary change,” a Treasury spokesperson said in an emailed statement confirming her resignation.
Without mentioning the data agreement, the spokesperson noted further that the agency was “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.”
Krause’s predecessor, Doug O’Donnell, stepped down as acting commissioner after declining to sign a similar data-sharing agreement with the Department of Homeland Security in February. The last Senate-confirmed IRS commissioner, Danny Werfel, resigned on President Donald Trump’s first day in office.
Krause has chosen to apply for a deferred resignation program currently offered by the IRS, according to a source familiar with her decision. The individual, speaking on condition of anonymity, said her decision to step down was influenced in part by concerns over the recently finalized data-sharing agreement, Reuters noted.
The IRS began implementing sweeping workforce reductions on Friday, dismantling its civil rights office and initiating mass firings that could eliminate up to 25% of its staff.
The cuts are part of a broader overhaul of the federal workforce that has already resulted in the loss of more than 200,000 jobs. President Donald Trump has appointed billionaire Elon Musk to lead the effort to restructure and streamline the federal government through his Department of Government Efficiency (DOGE) team.
Earlier this month, Musk told Texas GOP Sen. Ted Cruz that “magic money computers” within the U.S. government are generating payments “out of thin air,” leaving lawmakers clueless about federal spending.
Speaking on Cruz’s podcast, Musk revealed that 14 such systems exist within the U.S. Treasury and other agencies, transferring large sums without the necessary evidence to justify the payments.
Musk claimed that in departments housing one of these systems, reported spending could be off by as much as 5 percent of the budget when presented to Congress, while Cruz suggested that these improper payments could potentially total “trillions” of dollars.
“They’re mostly at Treasury,” Musk said about the computers discovered by his U.S. Department of Government Efficiency, or DOGE, “but there’s some at [Health and Human Services], there’s one or two at State, there’s some at [the Department of Defense].”
“I think we’ve found now 14 magic money computers. They just send money out of nothing,” he told the Texas Republican senator.
Expounding on DOGE’s discovery, the unconventional entrepreneur explained that the presence of these computers prevents the Treasury Dept. from fully informing lawmakers about the federal government’s total spending.
“You may think that government computers all communicate with each other, synchronize, and accurately calculate where funds are going, making the numbers you see as a senator the real ones. They’re not,” he said.
Nearly 150,000 California Mail Ballots Rejected In Primary
California election officials are examining why nearly 150,000 mail-in ballots were rejected during the state’s June primary, with late-arriving ballots accounting for most of the increase.
The higher rejection rate comes despite years of election law changes designed to make voting more accessible and ensure more ballots are ultimately counted.
According to data compiled by the California Secretary of State’s office, 148,241 mail-in ballots were rejected during the June primary, representing 1.73% of all mail ballots returned.
That marks an increase from the 2024 primary, when 108,982 ballots were rejected, or 1.56% of all mail ballots cast.
The largest reason for rejection was ballots arriving too late to qualify under California law.
State data shows that 93,479 ballots were rejected because they failed to meet the state’s deadline requirements.
California allows mail ballots to arrive up to seven days after Election Day, provided they are postmarked on or before Election Day.
Voting experts believe many of the rejected ballots received postmarks dated after Election Day, making them ineligible to be counted even if they arrived within the seven-day grace period.
Kim Alexander, president of the nonpartisan California Voter Foundation, said the timing of postal processing appears to be a significant concern.
“Ballots rejected due to lateness are caused primarily to being postmarked too late to count, not because they arrived too late to count,” Alexander said.
Election experts have questioned whether recent operational changes within the U.S. Postal Service may be contributing to delayed postmarks.
Earlier this year, a group of mostly Democratic U.S. senators wrote to the Postal Service expressing concern that mail-processing changes could affect ballot handling during federal elections.
Updated Postal Service procedures mean postmarks may reflect when mail is processed at regional facilities rather than when it first enters the mail system.
Because processing centers have been consolidated in some areas, election officials have warned that postmark timing could be affected.
Before the June primary, California election officials encouraged voters to mail ballots as early as possible because of potential postal delays.
The June election also featured a highly competitive race for governor, which some experts believe encouraged many voters to wait until the final days before casting ballots.
In addition to late-arriving ballots, approximately 44,000 ballots were rejected because election officials determined the voter’s signature did not match the signature on file.
Another 8,300 ballots were rejected because the return envelope did not contain a signature.
State records also show that 743 ballots were rejected because those voters had already cast another ballot.
Other rejected ballots involved missing ballots inside return envelopes or multiple ballots submitted in a single envelope.
The highest rejection rate in the state occurred in Tulare County, where 3.52% of returned mail ballots were rejected.
Alpine County and Merced County followed closely, each recording rejection rates of 3.36%.
California has frequently faced criticism for taking weeks to complete vote counting after major elections, largely because state law permits ballots meeting certain requirements to continue arriving after Election Day.
Following the June primary, President Donald Trump again criticized California’s election system, while the Department of Justice opened an investigation into election administration in Los Angeles County.
Election experts emphasize that the increase in rejected ballots should not be interpreted as evidence of widespread voter fraud.
A 2025 report by the Brookings Institution found documented cases of mail ballot fraud remained extremely rare, estimating roughly four cases for every 10 million mail ballots cast, The Associated Press reported.
State officials have not identified evidence of widespread fraud connected to the June primary, but the increase in rejected ballots is expected to receive additional scrutiny as election administrators evaluate whether changes in postal operations, voter behavior or election procedures contributed to the higher rejection rate.
