The acting commissioner of the Internal Revenue Service is expected to announce on Tuesday that he is retiring, according to three people familiar with the move, the latest agency head to depart after Elon Musk’s team pushed for access to sensitive data and mass layoffs.
Doug O’Donnell, a 40-year veteran of the I.R.S., took over the agency last month after the last commissioner stepped down at the beginning of President Trump’s term. Melanie Krause, the chief operating officer at the I.R.S., is expected to become the new acting leader after Mr. O’Donnell leaves on Friday, the people said on condition of anonymity because they were not authorized to speak publicly.
Mr. O’Donnell had been considering retiring soon, even before Mr. Trump took office and began cutting thousands of jobs at the tax collector, two of the people said. Mr. Trump has nominated Billy Long, a former Republican congressman who aggressively marketed a tax credit that the I.R.S. has tried to shut down, to lead the agency of roughly 100,000 staff.
Still, the I.R.S. has been in the cross hairs of the Trump administration. More than 6,700 employees were laid off last week as part of Mr. Musk’s push to dramatically reduce the size of the work force.
The I.R.S. last week reached an agreement setting the terms of employment for a young software engineer, Gavin Kliger, affiliated with Elon Musk’s so-called Department of Government Efficiency, who is temporarily working at the tax agency. That agreement bars Mr. Kliger from viewing individual taxpayers’ information.
