O’Donnell’s Resignation Signals Tension Between IRS and DOGE Service
Doug O’Donnell, the acting commissioner of the Internal Revenue Service, plans to step down as early as Tuesday. Four sources familiar with the matter confirmed his decision. O’Donnell has served as a civil servant for several decades but now feels compelled to leave due to the turmoil caused by Elon Musk’s U.S. DOGE Service.
O’Donnell will officially leave by the end of the week, according to sources. Melanie Krause, another senior IRS official, will take over temporarily. President Trump has nominated former Missouri congressman Billy Long as the permanent replacement, pending Senate confirmation.
IRS Faces Unprecedented Challenges
O’Donnell’s resignation comes at a crucial time for the IRS. The agency is overwhelmed by tax filing season while also facing scrutiny from Musk’s team. Sources say O’Donnell is deeply concerned about Musk’s decisions, particularly the mass firings of probationary employees. Musk-driven budget cuts could eliminate around 7,000 IRS jobs.
O’Donnell had planned to retire sometime this year. However, sources suggest that Musk’s influence on the agency accelerated his decision to leave.
Concerns Over DOGE Service’s Access to IRS Data
The White House is working on a memorandum of understanding that would grant DOGE Service officials extensive access to IRS systems, properties, and databases. While the draft agreement includes confidentiality requirements, IRS officials remain uneasy. They view this level of access as highly unusual and potentially risky.
The Treasury Department has yet to respond to requests for comment regarding O’Donnell’s resignation. The New York Times first reported his anticipated departure. Efforts to reach O’Donnell for direct comment were unsuccessful.
More High-Profile Exits at Treasury
O’Donnell’s resignation follows another significant departure at the Treasury Department. David A. Lebryk, the highest-ranking civil servant in the department, also stepped down. His exit was reportedly linked to DOGE Service’s request for access to sensitive payment systems.
The IRS and Treasury Department now face increasing uncertainty. The agency must manage tax filings while adapting to new directives under Musk’s influence. O’Donnell’s departure raises questions about the future of IRS leadership and how the agency will handle these rapid changes.
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