Why is the acting I.R.S. commissioner expected to retire? Elon Musk knows the answer

Editing: The Greek Courier

Source: The New York Times

The acting commissioner of the Internal Revenue Service is expected to announce his retirement on Tuesday, according to three sources familiar with the situation. This announcement follows a series of departures among agency heads, which have been prompted by requests from Elon Musk's team for access to sensitive data and the occurrence of mass layoffs.

Doug O’Donnell, who has spent nearly 40 years at the IRS, took over as the agency's leader last month, following the resignation of the previous commissioner at the beginning of President Trump’s term. Melanie Krause, the IRS's chief operating officer, is expected to become the acting leader once Mr. O’Donnell departs on Friday. This information comes from sources who requested anonymity because they were not authorized to speak publicly.

Mr. O’Donnell’s departure occurs during a turbulent period for the I.R.S. Former President Trump has criticized the tax agency, a longstanding target for Republicans, calling for significant layoffs. Recently, over 6,700 employees were let go. Additionally, Elon Musk has proposed abolishing the I.R.S. and has sent a member of his so-called Department of Government Efficiency to the agency, with plans for more personnel to follow.

Before the layoffs, the I.R.S. employed approximately 100,000 staff members and was responsible for collecting over $5 trillion in revenue annually. Former President Joseph R. Biden Jr. allocated billions in new funding to the agency to modernize its outdated technology and strengthen its capacity to pursue companies and wealthy individuals who do not pay the taxes they owe.

Mr. Trump is quickly undoing those efforts, which tax experts warn could raise the deficit by making it easier for individuals to evade taxes.

The I.R.S. is currently in the midst of its annual filing season, the busiest time of the year when millions of Americans submit their tax returns. Democrats have raised concerns that the layoffs could lead to delays and errors for those waiting to receive their tax refunds. A spokeswoman from the Treasury Department did not respond to a request for comment.

In a departure from the tradition of treating the leader of the IRS as a nonpartisan management position, Mr. Trump has nominated Billy Long, a former Republican congressman, to be the commissioner. While in Congress, Mr. Long supported legislation advocating for the abolition of the IRS. After leaving Congress, he aggressively promoted a tax credit that the IRS warned was prone to fraudulent activity. The Senate has yet to consider Mr. Long’s nomination.r Mr. Long’s nomination.

Mr. O’Donnell had been contemplating retirement for some time, even before Mr. Trump took office and began cutting thousands of jobs at the tax collector's office, according to two individuals familiar with his departure. 

Last week, I.R.S. officials resisted efforts from Mr. Musk’s team to gain broad access to the agency’s data, which includes sensitive information about Americans' incomes and families. Ultimately, the agency established an agreement that prohibits Gavin Kliger, a young software engineer associated with Mr. Musk’s team, from accessing individual taxpayers’ information while working at the I.R.S.formation while working at the I.R.S.