New Acting Head of IRS Removed During Musk and Bessent's Ongoing Turf Dispute
Gary Shapley, who has recently been appointed as the fourth head of the IRS this year, was chosen for the position just days ago by President Donald Trump.
TroibNews 
President Donald Trump is set to appoint a new chief to the IRS, marking the fourth leadership change this year. This decision comes amid complaints from Treasury Secretary Scott Bessent, who expressed that he was not consulted about the appointment after Elon Musk recommended the candidate. This information was shared by a White House ally and a Trump administration official familiar with the situation, both of whom spoke on the condition of anonymity to discuss private conversations.
Bessent also dismissed a notable member of Musk's DOGE team who had been assigned to the IRS, following a major staff reduction initiative at the agency.
Recently, Trump appointed Gary Shapley, an IRS criminal investigator and whistleblower in the Hunter Biden tax case, to temporarily lead the agency. However, sources indicate that Shapley was mainly placed in this position at Musk’s urging, and Bessent was left uninformed about the decision.
Outside the Oval Office, Bessent voiced his frustration on Thursday, expressing a desire for someone he could trust to lead the IRS, according to the administration official.
Gavin Kliger, an employee from the Department of Government Efficiency, was terminated by Bessent after he had been tasked with implementing significant cuts within the agency, according to the official.
Michael Faulkender, who currently serves as the deputy secretary for the Treasury Department, has been identified as the new acting head of the IRS, as noted by the White House ally.
The New York Times was the first to report on these developments.
Bessent had appointed Shapley as a special adviser to the department in March, following Shapley’s claims that the Biden administration interfered with a probe into tax evasion by Hunter Biden. On Friday, Bessent stated that Shapley “remains among my most important senior advisors at the U.S. Treasury as we work together to rethink and reform the IRS.”
He further noted that after Shapley and fellow whistleblower Joseph Ziegler complete their year-long investigation into the Hunter Biden case, “I will ensure they are both in senior government roles that will enable the results of their investigation to translate into meaningful policy changes.”
“Trust must be brought back to the IRS, and I am fully confident that Deputy Secretary Michael Faulkender is the right man for the moment," Bessent added.
This incident highlights the growing tensions between officials in Trump's Cabinet and Musk, who is sometimes viewed as circumventing their authority. It also arises as the White House plans significant layoffs at the IRS, which could cut the agency's workforce by as much as 40 percent.
According to the administration official, Bessent was uncomfortable with both the rapid pace and the extensive scope of the planned workforce reductions, which normally require a 60-day notice before layoffs. He primarily aimed to reduce IT contracts.
Shapley’s exit follows that of the former acting IRS commissioner, Melanie Krause, who resigned after the IRS reached an agreement with the Homeland Security Department to share data on undocumented immigrants.
Faulkender will become the fifth head of the agency following the departure of IRS Commissioner Danny Werfel in January.
Trump’s choice for commissioner, former Rep. Billy Long, has been embroiled in controversies related to tax credits he promoted in the private sector. Long recently settled a $130,000 personal campaign loan from his unsuccessful Senate run using donations from individuals connected to the tax consultancy industry.
To date, Long has not undergone a confirmation hearing in the Senate.
Ramin Sohrabi for TROIB News
Bessent also dismissed a notable member of Musk's DOGE team who had been assigned to the IRS, following a major staff reduction initiative at the agency.
Recently, Trump appointed Gary Shapley, an IRS criminal investigator and whistleblower in the Hunter Biden tax case, to temporarily lead the agency. However, sources indicate that Shapley was mainly placed in this position at Musk’s urging, and Bessent was left uninformed about the decision.
Outside the Oval Office, Bessent voiced his frustration on Thursday, expressing a desire for someone he could trust to lead the IRS, according to the administration official.
Gavin Kliger, an employee from the Department of Government Efficiency, was terminated by Bessent after he had been tasked with implementing significant cuts within the agency, according to the official.
Michael Faulkender, who currently serves as the deputy secretary for the Treasury Department, has been identified as the new acting head of the IRS, as noted by the White House ally.
The New York Times was the first to report on these developments.
Bessent had appointed Shapley as a special adviser to the department in March, following Shapley’s claims that the Biden administration interfered with a probe into tax evasion by Hunter Biden. On Friday, Bessent stated that Shapley “remains among my most important senior advisors at the U.S. Treasury as we work together to rethink and reform the IRS.”
He further noted that after Shapley and fellow whistleblower Joseph Ziegler complete their year-long investigation into the Hunter Biden case, “I will ensure they are both in senior government roles that will enable the results of their investigation to translate into meaningful policy changes.”
“Trust must be brought back to the IRS, and I am fully confident that Deputy Secretary Michael Faulkender is the right man for the moment," Bessent added.
This incident highlights the growing tensions between officials in Trump's Cabinet and Musk, who is sometimes viewed as circumventing their authority. It also arises as the White House plans significant layoffs at the IRS, which could cut the agency's workforce by as much as 40 percent.
According to the administration official, Bessent was uncomfortable with both the rapid pace and the extensive scope of the planned workforce reductions, which normally require a 60-day notice before layoffs. He primarily aimed to reduce IT contracts.
Shapley’s exit follows that of the former acting IRS commissioner, Melanie Krause, who resigned after the IRS reached an agreement with the Homeland Security Department to share data on undocumented immigrants.
Faulkender will become the fifth head of the agency following the departure of IRS Commissioner Danny Werfel in January.
Trump’s choice for commissioner, former Rep. Billy Long, has been embroiled in controversies related to tax credits he promoted in the private sector. Long recently settled a $130,000 personal campaign loan from his unsuccessful Senate run using donations from individuals connected to the tax consultancy industry.
To date, Long has not undergone a confirmation hearing in the Senate.
Ramin Sohrabi for TROIB News
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