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Recent headlines about IRS leadership changes have become increasingly common, with the latest development being the resignation of acting Commissioner Melanie Krause. She, appointed to the agency in 2021, left her post in early May 2025, following a trend that has seen nearly one IRS commissioner or acting commissioner resign each month since President Trump began his second term. This series of departures raises questions about the stability of the agency at a time when Trump’s nominee for IRS Commissioner, Billy Long, has yet to undergo Senate confirmation.
Why IRS Commissioners Are Resigning
The trend of resignations prompts a closer examination of what led to these changes and the impact each commissioner had on the IRS. Understanding the strategic roles they played may shed light on their decisions to step down amid shifting political landscapes.
Former IRS Commissioner Danny Werfel
Nominated by President Joe Biden, Danny Werfel assumed office as IRS Commissioner on March 13, 2023, with a term intended to last until November 2027. However, he resigned on the day Donald Trump was inaugurated for his second term, following Trump’s choice of Billy Long as his successor. Werfel became the 50th IRS commissioner and brought extensive experience from his prior roles in various federal agencies throughout the Clinton, Bush, and Obama administrations. He first became IRS acting commissioner in 2013.
Werfel’s major initiatives included overseeing a significant allocation of $79 billion given to the IRS through the Inflation Reduction Act, which was aimed at modernizing the agency’s operations. His leadership also focused on enhancing taxpayer services and hiring approximately 87,000 new agents to improve compliance among high-income earners and corporations. This ambitious agenda, however, faced financial setbacks when Congress limited funding through a debt deal.
Former IRS Commissioner Doug O’Donnell
After Werfel’s departure, Doug O’Donnell stepped in as acting commissioner in January 2025, but his term was brief, lasting only a month before his retirement. O’Donnell’s nearly four-decade career at the IRS primarily involved roles in the Large Business and International Division, culminating in his role as acting commissioner from November 2022 to March 2023.
Difficult circumstances surrounded O’Donnell’s acting commission. During his tenure, the Trump administration, led by Elon Musk’s Department of Operating Government Efficiency, initiated extensive layoffs, leaving thousands of IRS workers without jobs. Musks’ moves, including trying to access confidential IRS data, raised eyebrows and caused unrest among IRS staff. Notably, O’Donnell’s refusal to sign a contentious IRS data-sharing agreement with the Department of Homeland Security raised questions about the agency’s autonomy before his early retirement.
IRS Commissioner Melanie Krause
Taking over in February 2025, Krause’s tenure ended just two months later. Before her appointment as commissioner, she had advanced quickly through the ranks at the IRS, previously holding positions focused on data analytics and operational management. Her resignation came amid developments involving a data-sharing agreement with ICE that sparked legal concerns, raising issues regarding taxpayer privacy that could directly impact the agency’s functioning. Notably, she reportedly remained in the dark about final discussions on this agreement, a situation that likely contributed to her decision to resign.
Trump’s New IRS Commissioner Nominee
Who is Billy Long?
Former Missouri Representative Billy Long was nominated by President Trump to lead the IRS. With a professional background as an auctioneer and six terms in Congress, Long has supported programs such as the Employee Retention Tax Credit designed to assist businesses during the COVID-19 pandemic. His involvement in this area, however, has led to concerns over potential conflicts of interest regarding IRS scrutiny of improper claims related to the tax credit.
Long has proposed radical changes to the tax system, suggesting replacing the existing tax code with a flat tax and even abolishing the IRS entirely. Despite his controversial views, some advocate for his outsider status, believing it could usher in fresh perspectives on the agency’s responsibilities. However, his Senate confirmation remains pending, with no clear timeline for when it might happen.
The Implications of IRS Instability
The ongoing instability within the IRS has significant implications for both the agency and taxpayers. Reports indicate that more than 20,000 federal IRS employees could face layoffs, creating concerns over delayed tax processing, longer wait times for assistance, and a decrease in auditor availability. The shifts in personnel could jeopardize the quality of service provided to taxpayers, leading to concerns about the IRS’s capabilities moving forward.
Additionally, the Trump administration’s decision to eliminate the IRS’s Direct File program further complicates matters for taxpayers who have relied on this free filing option. With these uncertainties in the air, taxpayers are advised to consider backup plans for filing taxes in the upcoming seasons. Experts also predict that the ongoing cuts could reduce the agency’s audit capabilities, particularly affecting high-income individuals and large corporations that have recently faced increased scrutiny.
Acting IRS Commissioner Gary Shapley
In a recent move, President Trump appointed Gary Shapley, known for his whistleblowing on Hunter Biden’s tax investigations, as the acting IRS Commissioner. With his extensive background in the IRS and experience in notable tax inquiries, Shapley brings a unique perspective to the role, especially amid allegations of political interference in tax investigations.
As the situation continues to evolve, observers will be watching closely to see how these leadership changes impact the IRS’s operations, services, and overall tax policy in the future.
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