Doug O’Donnell, the acting head of the Internal Revenue Service (IRS), is set to announce his retirement on Tuesday. This decision comes during a period of significant turbulence at the tax collection agency, as revealed by a source familiar with his plans.
O’Donnell's anticipated departure follows a tumultuous week, marked by the Trump administration's decision to lay off thousands of IRS employees. Additionally, there has been an attempt by personnel from the so-called Department of Government Efficiency (DOGE) to access taxpayer data.
Having dedicated four decades to the IRS, Doug O’Donnell assumed leadership in January after President Donald Trump announced plans to replace the then-Commissioner, Danny Werfel. O’Donnell's exit is coinciding with a critical tax-filing season affecting millions of Americans.
The news of his retirement was first reported by The New York Times on Monday night. Following his departure, Melanie Krause, currently serving as the chief operating officer at the IRS, will step in as the interim chief.
It remains unclear how much O’Donnell’s decision to retire is connected to the recent disruptions within the IRS. Last week, the agency laid off over 6,500 employees as part of an Elon Musk-led initiative to downsize government operations.
A representative from Musk's DOGE also recently attempted to gain access to sensitive IRS systems. However, an agreement reached last week between the Treasury Department and the White House ensures that DOGE will not have access to individual taxpayers’ information.
O’Donnell previously held the position of acting commissioner in 2022 and 2023, before Danny Werfel's confirmation. He resumed the role of acting commissioner last month following Werfel's resignation on the day President Trump was inaugurated.
President Trump has nominated former Rep. Billy Long (R-Mo.) as the new IRS commissioner. However, the Senate has yet to take significant action regarding Long’s nomination.
