Leadership Shake-Up Sparks Tensions Over IRS Control
The head of the IRS is being forced out just days after a surprise appointment rocked Washington’s inner circles — revealing deep fractures within the highest levels of the Trump administration.
Sources say Treasury Secretary Scott Bessent clashed with President Trump over the quiet installation of Gary Shapley as acting IRS commissioner. Shapley, a well-known whistleblower in the Hunter Biden case, was reportedly tapped for the role without Bessent’s knowledge — sparking a swift and sharp backlash.
The dispute underscores a growing power struggle between Bessent and Elon Musk, who has steadily expanded his influence in federal bureaucracy through his Department of Government Efficiency. Musk is said to support Trump’s move to install loyalists in key oversight agencies ahead of the 2025 budget wars and tax enforcement battles.
The Wall Street Journal reports on the imminent departure of Shapley, the tax agency’s fourth leader since January:
Deputy Treasury Secretary Michael Faulkender will now run the Internal Revenue Service, becoming the fifth person to hold that job so far this year.
He replaces Gary Shapley, the former IRS criminal investigator who had criticized the government’s investigation of Hunter Biden. Shapley, who had already been working at the Treasury Department, moved into the top IRS job on Tuesday. A memo signed by Trump appointed him to the post. Republicans, including Sen. Chuck Grassley (R., Iowa), cheered Shapley’s appointment.
Shapley had replaced former IRS executive Melanie Krause, who had replaced longtime IRS official Douglas O’Donnell, who had replaced Danny Werfel, the Biden-nominated commissioner who resigned on Inauguration Day. Shapley is expected to remain a senior official in the IRS’s criminal investigation division, one of the people said.
Trump has tapped Billy Long, a former Republican congressman from Missouri, to run the agency. The Senate Finance Committee hasn’t scheduled his confirmation hearing, and Democrats are criticizing Long’s ties to firms promoting questionable tax credits.
Bessent was reportedly frustrated that Shapley’s appointment was made without his knowledge, despite the IRS falling under the jurisdiction of the Treasury Department. According to The New York Times, Musk — through DOGE — bypassed Bessent and pushed Shapley’s appointment directly through White House channels.
Feeling sidelined, Bessent raised concerns directly with President Trump, arguing that the decision was made at Musk’s urging without his consultation.
Why Shapley’s Appointment Matters
IRS Leadership in Flux: Shapley’s appointment was made on Tuesday, with only five officials reportedly informed beforehand — a sign of the extraordinary secrecy surrounding the decision.
Whistleblower Credentials: Shapley made headlines for alleging DOJ interference in the Hunter Biden probe. His sudden promotion has fueled speculation about the administration’s next steps in IRS reform.
Internal Blowback: Bessent’s team pushed back hard, arguing the decision undermined the his authority and blindsided top officials at a critical time.
Musk’s Expanding Reach
Elon Musk’s involvement adds another layer to the drama. His Department of Government Efficiency has gained quiet but sweeping power over regulatory and administrative bodies.
What’s Next for the IRS?
Institutional Uncertainty: The leadership change comes at a pivotal moment, as the IRS prepares for major reforms, the rollout of new AI-powered enforcement tools, and potential changes to the tax code.
This is a breaking news story. Please check back for updates.
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Since Bessent is a common thread here, I’d say he doesn’t work and play well with others. Maybe he’s the one to remove!
Boy, just what we don’t need in the early months of President Trump’s term, everyone needs to stick together.
SOunds like a “HIT JOB, trying to disrupt the Administration.