IRS Commissioner Leaving Agency After Agreement With DHS on Illegal Immigrant Data

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Melanie Klaus was on the committee for about a month.

The IRS representatives have left the agency, officials said hours after an agreement was reached with Homeland Security authorities to share data on illegal immigration.

Deputy Commissioner Melanie Kraus is no longer with the IRS, a spokesman for the IRS’s Department of Treasury, the parent agency of the IRS.

“Melanie Kraus has been leading the IRS through times of extraordinary change,” the spokesman told the press in a statement. “I hope Melanie makes the next effort,” the spokesman later added.

The spokesman also said, “As we focus on modernizing IT and reorganize our agencies to provide taxpayer-friendly services, we are also in the process of breaking down data silos that have been standing for a long time in ways to identify waste, fraud and abuse and lead criminals to justice.”

Krause joined the IRS in 2021 after seven years at the General Office of the Veterans Affairs Office. She was the agency’s chief operating officer when she was promoted to proxy committee in February after Doug O’Donnell retired. O’Donnell previously took over as acting commissioner after President Donald Trump resigned shortly before he was sworn on January 20th.

Klaus and the IRS did not return requests for comment.

According to court filings, the IRS and the Department of Homeland Security (DHS) have recently reached an agreement that provides the DHS with the ability to request tax return information to those under criminal investigations. If the DHS requests information, “the IRS must provide it,” a government lawyer said.

“Because public safety and terrorist threats may exist, sharing information between agencies is essential to identify people in our country, to include violent offenders, to help us neutralize them, scrub these individuals from voter roles, and to identify the public interest these aliens use at US taxpayer fees.”

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Critics denounced the move.

“This is a very shameful thing, breaks the promise that information immigrants were provided to pay the IRS tax system and will not be used for deportation,” Sen. Jackie Rosen (D-Nev.) wrote on social media platform X.

Federal law primarily prohibits the IRS from sharing confidential taxpayer information, with exceptions that include information used in federal criminal investigations.

A Treasury spokesman told the press in a statement that the contract was “signed under the long-standing authorities granted by Congress.”

The New York University Tax Law Center simply stated that because the IRS system is not designed for immigration enforcement, it is likely that DHS is seeking data from individuals, but the information provided by the IRS is actually from another individual.

Jack Phillips contributed to this report.

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