Trump replaces IRS chief: The decision stems from a dispute between Elon Musk and the treasury.
President Donald Trump has authorized the removal of Gary Shapley as acting IRS commissioner following revelations that his appointment was made at the direction of Elon Musk and without the knowledge of the Treasury Secretary. Michael Faulkender will assume the position on an interim basis.
President Donald Trump has approved the replacement of Gary Shapley as acting commissioner of the Internal Revenue Service (IRS), following a request from Treasury Secretary Scott Bessent. According to a source familiar with the discussions, Bessent informed the president that Shapley's appointment was made without his knowledge and allegedly at the direction of Elon Musk. As a result, Michael Faulkender, the current deputy secretary of the Treasury, is expected to assume the role on an interim basis.
Shapley was recently appointed to replace Melanie Krause, who resigned earlier this month following controversy over a data-sharing agreement with the Department of Homeland Security. The agreement allowed for the sharing of tax information with immigration authorities, raising questions about the protection of taxpayers' personal data.
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Conflict between Musk and treasury officials
The decision comes amid tensions between Scott Bessent and Elon Musk, who leads the Department of Government Efficiency within the Trump administration. On social media, Musk shared a post by activist Laura Loomer that criticized Bessent and accused him of ties to individuals allegedly opposed to Trump. Musk called the issue "concerning," fueling controversy over his influence in key government decisions.
During a recent Cabinet meeting, Trump asserted that Musk has not requested personal favors and dismissed the possibility that his role poses a conflict. However, the recent reshuffle at the IRS suggests that internal differences continue to lead to adjustments in key positions. Meanwhile, Trump's nominee to permanently lead the IRS, Billy Long, has yet to be confirmed by the Senate.
Implications and next steps for the IRS
The White House has not issued any official comments on Shapley's replacement, and the decision comes amid a broader restructuring at the IRS. The change could have implications for tax data management and interagency cooperation, especially on sensitive issues such as the use of tax information for immigration purposes.
Meanwhile, the Senate confirmation process for a new permanent IRS commissioner remains on hold. With Faulkender temporarily assuming leadership of the tax agency, the Treasury Department is expected to closely monitor IRS operations during this transition period.