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What was reported about Krause’s departure?
Krause became acting IRS commissioner on February 25, 2025, after Doug O’Donnell announced his retirement. The IRS said she had been the agency’s chief operating officer and had joined in 2021 as chief data and analytics officer. Her COO responsibilities included privacy, governmental liaison and disclosure functions.
On April 8, the Associated Press reported that Krause planned to step down after Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem signed a data-sharing document. The AP attributed that account to two unnamed people familiar with her decision. It is therefore accurate to describe the departure as reported, and its connection to the agreement as attributed reporting—not as a public statement by Krause or an explanation confirmed by the IRS.
What information could ICE seek, and what was disclosed?
The arrangement described by the AP involved ICE submitting names and addresses to the IRS for cross-checking. The later court records at issue concern address information, not the transfer of complete tax returns. Nor did everyone in the much larger population of ICE requests necessarily have information disclosed.
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In a November 21, 2025 memorandum opinion, the U.S. District Court for the District of Columbia described an August 7 disclosure of address information for approximately 47,000 taxpayers. The court said this followed IRS processing of requests concerning around 1.2 million taxpayers. In its September 8, 2026 opinion, the D.C. Circuit described the written procedure as having been used to respond to ICE requests concerning at least 1.28 million taxpayers. That figure describes the population associated with requests, not the number of addresses disclosed.
How did the court rulings differ?
The rulings addressed different legal targets and records at different stages. The early case concerned the memorandum of understanding (MOU) on the record then before the court. The later case examined the IRS’s implemented procedure and an actual disclosure. The appellate opinion addressed whether that procedure could be reviewed under the Administrative Procedure Act (APA) and whether its implementation followed statutory requirements.
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| Date and court | What was before the court | Decision and posture |
|---|---|---|
| May 12, 2025 — U.S. District Court for the District of Columbia, Centro de Trabajadores Unidos v. Bessent | The MOU and the record and interpretation then available. | The court found the MOU consistent with 26 U.S.C. § 6103(i)(2) on that record and denied preliminary relief. It said the statute’s prerequisites still had to be met. |
| November 21, 2025 — U.S. District Court for the District of Columbia, Center for Taxpayer Rights v. IRS | The implemented address-sharing policy and the completed disclosure. | The court found a substantial likelihood that the policy and disclosure violated the APA and statutory conditions, and granted preliminary relief. |
| September 8, 2026 — U.S. Court of Appeals for the D.C. Circuit, Center for Taxpayer Rights v. IRS | The IRS Data-Exchange Procedure and whether it was reviewable agency action. | The court held that the written procedure was final agency action reviewable under the APA and described its implementation as departing from statutory requirements. |
These decisions are not simply opposite answers to the same question. The May ruling assessed the MOU on the record then available; the November ruling assessed an operational policy and disclosure; and the September 2026 appellate opinion addressed the reviewability and legality of the written procedure. The appellate ruling concerns that procedure, not every possible form of information exchange between the IRS and the Department of Homeland Security.
What does federal tax-confidentiality law say?
Under 26 U.S.C. § 6103, tax-return information is generally confidential, subject to specific statutory exceptions. The May 2025 court described § 6103(i)(2) as permitting or requiring certain disclosures when its conditions are met, including a valid request connected to a non-tax criminal investigation or proceeding. The later courts examined whether the IRS’s actual procedure and disclosure satisfied the applicable statutory requirements and the APA. Their conclusions apply to the records, procedure and legal issues before them; they should not be read as a blanket ruling that any IRS disclosure to ICE is lawful or unlawful.
Who was leading the IRS afterward?
In a March 13, 2026 update, the IRS said Scott Bessent’s acting-commissioner service had expired and that he no longer served in that role. The agency said CEO Frank J. Bisignano was leading daily operations. That update clarifies the agency’s leadership at that time; it does not establish Krause’s reason for the departure reported in April 2025.
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