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Trump Reverses IRS Leadership Appointment Amid Treasury-Musk Tensions

President Trump rescinds Gary Shapley’s appointment as acting IRS commissioner following Treasury Secretary Scott Bessent’s objection to Elon Musk’s involvement in the decision.

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
The Internal Revenue Service building in Washington.
Internal Revenue Service whistleblower Gary Shapley testifies in the House Oversight and Accountability Committee hearing about alleged meddling in the Justice Department's investigation of Hunter Biden on Capitol Hill, Washington, U.S., July 19, 2023. REUTERS/Leah Millis/File Photo

Overview

  • President Trump rescinded Gary Shapley’s appointment as acting IRS commissioner just three days after naming him to the role.
  • Treasury Secretary Scott Bessent raised concerns that Shapley’s appointment was orchestrated by Elon Musk’s U.S. DOGE Service without consulting Treasury leadership.
  • Deputy Treasury Secretary Michael Faulkender is expected to step in as the next acting IRS commissioner while permanent nominee Billy Long awaits Senate confirmation.
  • Shapley, a former IRS investigator known for his 2023 accusations regarding the Hunter Biden tax investigation, replaced Melanie Krause, who resigned over a controversial data-sharing agreement with DHS.
  • The decision highlights an ongoing power struggle between Musk’s U.S. DOGE Service and traditional Cabinet leadership over control of federal agency operations.