President Donald Trump removed Gary Shapley from his role as acting commissioner of the Internal Revenue Service just days after his appointment, following objections from Treasury Secretary Scott Bessent and amid behind-the-scenes tension involving Elon Musk, according to administration officials familiar with the matter.
Shapley, a former IRS criminal investigator turned Republican whistleblower, had been installed earlier in the week, replacing outgoing commissioner Melanie Krause. The move raised alarm inside the agency, with some career civil servants expressing concern over his high-profile role in the Hunter Biden probe and what they viewed as a politicized appointment.
By Friday, the White House confirmed that Michael Faulkender, deputy secretary of the Treasury, will now lead the tax agency on an acting basis. Faulkender becomes the fifth person to helm the IRS this year, reflecting continued turmoil within the agency.
The New York Times first reported that Bessent approached Trump directly to reverse Shapley's appointment, arguing that it was made without his knowledge and reportedly at the direction of Elon Musk, who leads the administration's Department of Government Efficiency. Musk has previously been given broad authority over federal cost-cutting measures.
Musk appeared to respond to the dispute on social media, reposting far-right activist Laura Loomer's allegations of a "vetting crisis" at the White House, calling the situation "troubling." Loomer accused Bessent of enabling appointments that undermine Trump, vowing to take her concerns directly to the president.
Faulkender, who served as assistant secretary for economic policy during Trump's first term, was confirmed as deputy secretary by the Senate in March on a party-line vote. In his confirmation paperwork, Faulkender pledged to "enforce the tax code in an even-handed manner" and said he would uphold privacy safeguards, especially amid concerns about improper political influence over taxpayer audits.
"If confirmed, I will support the fair and impartial implementation of our nation's tax laws," Faulkender wrote. "I am absolutely committed to upholding taxpayer privacy rights."
The leadership shakeup follows Krause's recent resignation, which she attributed to pressure surrounding a controversial data-sharing deal between the IRS and the Department of Homeland Security. That agreement allows immigration authorities to verify tax data, a policy move pushed by Trump-aligned officials and opposed by some inside Treasury.
