IRS Tax News
Krause to serve as acting IRS Commissioner; O'Donnell retires after distinguished career
IR-2025-24, Feb. 25, 2025
WASHINGTON — Secretary of the Treasury Scott Bessent announced today that IRS Chief Operating Officer Melanie Krause will become acting IRS Commissioner following the retirement announcement of Doug O’Donnell.
O’Donnell, the IRS Deputy Commissioner who has been serving as the agency’s acting Commissioner since January, plans to retire on Friday. Krause will move into the deputy Commissioner role and serve as the acting Commissioner of the nation’s tax agency.
“On behalf of the Treasury Department, I want to thank Doug O’Donnell for his decades of public service and dedication to the nation’s taxpayers,” Secretary Bessent said. “He has been a remarkable public servant, and I wish him the best in retirement. At the same time, Melanie Krause and the agency’s leadership team are well positioned to serve during this critical period for the nation in advance of the April tax deadline.”
“The IRS has been my professional home for 38 years,” O’Donnell added. “I care deeply about the institution and its people and am confident that Melanie will be an outstanding steward of the Service until a new Commissioner is confirmed.”
Krause will become the acting IRS Commissioner. She has served as the IRS chief operating officer since April 2024 after acting as deputy Commissioner of operations support since January of the same year. As chief operating officer, Krause oversees the operations including the Chief Financial Officer; Chief Risk Office; Facilities Management and Security Services; Human Capital Office; Office of Chief Procurement; Privacy, Governmental Liaison and Disclosure; Research, Applied Analytics and Statistics (RAAS).
Krause began her IRS career in October 2021 as the Chief Data & Analytics Officer. In this role, in addition to leading the RAAS team, Krause also coordinated research activities including using AI and other advanced analytics. Krause also served as Acting Deputy Commissioner for Services and Enforcement from November 2022 to March 2023.
Prior to joining the IRS, Krause spent 12 years in the federal oversight community, including the Government Accountability Office and the Department of Veterans Affairs Office of Inspector General. Krause also maintains an active license as a registered nurse. She holds bachelor, master and doctoral degrees from the University of Wisconsin-Madison.
O’Donnell spent more than 38 years at the IRS in a variety of roles. In addition to his current duties as Acting Commissioner, he also served in the role from November 2022 through March 2023.