IRS Commissioner Resigns as Treasury Plans Deep Staffing Cuts in 2025
The IRS is facing major internal upheaval in 2025. Acting Commissioner Melanie Krause has announced her resignation. At the same time, the U.S. Treasury plans to cut up to 50% of IRS enforcement staff, raising questions about the agency’s future.
IRS Commissioner Steps Down Amid Internal Conflict
Krause’s resignation will take effect by May 15. It comes after growing tension over a recent policy shift involving Immigration and Customs Enforcement (ICE).
A new agreement gives ICE limited access to taxpayer address information. Reports say Krause was not told about the plan before it was finalized. Her departure marks the third commissioner to exit the agency within a year.
The leadership shake-up adds to the uncertainty already surrounding the IRS. It also comes at a time when the agency is under pressure to modernize and reduce costs.
Treasury Plans to Cut Up to 50% of IRS Enforcement Staff
The Treasury Department has outlined a major restructuring plan for the IRS. The changes include:
- Cutting up to 50% of enforcement personnel
- Reducing up to 20% of other staff
- Offering early retirements through the Voluntary Early Retirement Authority (VERA)
Treasury officials say these cuts will streamline operations and improve efficiency. However, critics argue they could weaken tax enforcement and reduce overall compliance.
What It Means for Taxpayers
With leadership changes and large-scale staff cuts, the IRS is expected to shift its focus. Here’s how it may affect taxpayers:
- Fewer audits may result in lower enforcement of existing tax laws
- Delays in customer service could increase across phone, mail, and digital channels
- Ongoing enforcement cases may slow down or stall due to staffing shortages
Experts warn that these cuts could lead to more aggressive tax avoidance. Higher earners may benefit most from the drop in enforcement.
Connection to the DOGE Proposal?
Some observers believe this shake-up may align with the Department of Government Efficiency (DOGE). The DOGE initiative — led by Elon Musk and supported by former President Trump — aims to cut waste and return savings to taxpayers.
The proposal includes possible stimulus-style “dividends” for taxpayers. Some projections have mentioned checks worth $1,200 to $5,000. No formal legislation has been passed.
Although not officially linked, the IRS restructuring could support the larger goals of DOGE if adopted.
Bottom Line
The IRS is entering a period of major change. Acting Commissioner Krause is stepping down, and Treasury is pushing deep staffing cuts — including to half of enforcement staff.
Taxpayers should expect delays, fewer audits, and longer response times in 2025. What comes next for the IRS — and whether this is part of a larger shift in federal tax policy — remains to be seen.
For continuing updates on IRS changes and tax policy in 2025, stay with FingerLakes1.com and check out the official IRS website.
This content is brought to you by the FingerLakes1.com Team. Support our mission by visiting www.patreon.com/fl1 or learn how you send us your local content here.