Internal Revenue Service leadership underwent another shuffle on Friday as President Donald Trump replaced acting commissioner Gary Shapley just days after his appointment, reportedly following a behind-the-scenes power struggle between White House officials.
Shapley, a longtime IRS agent celebrated by conservatives for his criticisms of the Hunter Biden investigation, was installed earlier this week with backing from Elon Musk's Department of Government Efficiency (DOGE), but apparently without the approval of Treasury Secretary Scott Bessent.
Bessent reportedly protested that Musk circumvented proper channels to push through Shapley's appointment, the New York Times reported.
Now, Bessent's deputy, Michael Faulkender, is stepping in as the third acting IRS leader in a single week.
"Trust must be brought back to the I.R.S., and I am fully confident that Deputy Secretary Michael Faulkender is the right man for the moment," Bessent said in a statement.
The incident highlights ongoing tensions between Musk and other top officials in the Trump administration. Despite his influence and ongoing efforts to embed DOGE loyalists across federal agencies, Musk's overreach has drawn backlash, even among administration allies.
The abrupt removal of Shapley comes amid broader upheaval within the IRS, including staff departures and controversial moves to share IRS data with ICE for immigration enforcement. Former acting head Melanie Krause resigned earlier this week in protest of that policy.
While Shapley's tenure was brief, Bessent praised his "passion and thoughtfulness" and noted that both Shapley and fellow IRS whistleblower Joseph Ziegler will take on senior roles elsewhere within the Treasury Department.
The episode underscores Musk's complicated role in Trump's second term. Though Trump still publicly praises the billionaire and his $100 million pledge to support GOP-aligned causes, the president has said he believes Musk will return to his private companies before too long.
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