Krause Appointed Acting IRS Commissioner as O’Donnell Retires

IRS Chief Operating Officer Melanie Krause will assume the role of acting IRS Commissioner following the retirement of Doug O’Donnell, the Internal Revenue Service’s acting Commissioner since January, the U.S. Department of the Treasury announced.

O’Donnell, who has spent 38 years at the IRS, plans to retire on Friday after serving in multiple leadership roles, including as Acting Commissioner from November 2022 to March 2023.

“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,” said Treasury Secretary Scott Bessent. “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.”

O’Donnell expressed confidence in his successor, saying, “The IRS has been my professional home for 38 years. 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 has served as the IRS Chief Operating Officer since April 2024, overseeing operations that include finance, risk management, facilities, human resources, procurement, privacy, and research. Before taking on this role, she was the IRS Deputy Commissioner of Operations Support, where she led key operational functions.

Krause joined the IRS in October 2021 as Chief Data & Analytics Officer, overseeing research, applied analytics, and statistics and advancing AI and analytical research initiatives. She later served as Acting Deputy Commissioner for Services and Enforcement from November 2022 to March 2023.

Prior to her tenure at the IRS, Krause spent 12 years in the federal oversight community, including positions at the Government Accountability Office and the Department of Veterans Affairs Office of Inspector General. In addition to her work in tax administration, Krause is a licensed registered nurse and holds bachelor’s, master’s, and doctoral degrees from the University of Wisconsin-Madison.

As acting Commissioner, Krause will manage the agency’s priorities leading up to the April tax deadline while maintaining oversight of its operational functions. The IRS has yet to announce a timeline for appointing a permanent Commissioner.

O’Donnell’s departure marks the end of a career spanning nearly four decades. Krause will serve as acting Commissioner until a new appointment is confirmed.

This article, "Krause Appointed Acting IRS Commissioner as O’Donnell Retires" was first published on Small Business Trends

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