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Trump Replaces IRS Acting Chief Gary Shapley After Musk-Bessent Dispute

Gary Shapley, a Hunter Biden whistleblower, is replaced by Michael Faulkender following Treasury Secretary Scott Bessent's objections to Elon Musk's role in his appointment.

FILE - IRS Supervisory Special Agent Gary Shapley arrives to testify on the Hunter Biden investigation during a House Ways and Means Committee hearing, Dec. 5, 2023, on Capitol Hill in Washington. (AP Photo/Jacquelyn Martin, File)
A sign for the Internal Revenue Service (IRS) is seen on its building on February 13, 2025 in Washington, DC. Members of Elon Musk's Department of Government Efficiency (DOGE) arrived at the Internal Revenue Service to begin examining the agency's operations.
Elon Musk during a cabinet meeting at the White House

Overview

  • President Trump rescinded Gary Shapley’s appointment as acting IRS commissioner just days after naming him to the position.
  • Treasury Secretary Scott Bessent objected to Shapley’s appointment, claiming it was orchestrated by Elon Musk’s Department of Government Efficiency without his knowledge.
  • Michael Faulkender, Deputy Treasury Secretary, will now serve as the fifth acting IRS commissioner this year until a permanent nominee is confirmed.
  • Shapley, known for whistleblower testimony on the Hunter Biden tax investigation, had replaced Melanie Krause, who resigned over a controversial data-sharing agreement with DHS and ICE.
  • The leadership turmoil highlights broader tensions between Musk’s influence in federal agencies and traditional Treasury oversight.