IRS Leadership Shake-Up: Treasury Secretary Intervenes Amid Elon Musk's Influence

The Internal Revenue Service (IRS) is poised for another leadership change following an unexpected intervention by Treasury Secretary Scott Bessent. This adjustment comes after Bessent expressed concerns to President Trump regarding the recent appointment of Gary Shapley as the acting head of the agency. According to multiple sources familiar with the matter, Bessent felt sidelined, believing that Shapleys installation was orchestrated by billionaire entrepreneur Elon Musk without his prior knowledge.
Background Context: The IRS has historically been a powerful agency within the Treasury Department, tasked with tax collection and enforcement. The agency has seen a revolving door of leadership under President Trump's administration, leading to questions about its stability and direction. Musk, known for his influence across various sectors including technology and space, has now extended his reach into government operations, raising eyebrows among political observers.
Bessent reportedly felt that Musk had circumvented his authority to ensure that Shapley, a veteran IRS agent, assumed the interim role. Musks newly established Department of Government Efficiency was instrumental in pushing Shapleys appointment through White House channels, but Bessent was neither consulted nor given the opportunity to weigh in on the decision that directly impacts the agency he oversees.
In response to these concerns, Bessent sought and received President Trumps consent to reverse the appointment. The next acting head of the IRS is likely to be Michael Faulkender, the current deputy secretary of the Treasury. Faulkender will temporarily fill the vacancy until the Senate confirms former Congressman Billy Long, who has been nominated by Trump for the permanent position. This move underscores a continued trend of instability within the IRS, where leadership changes have become somewhat routine.
Gary Shapley, the acting commissioner being replaced, has been a prominent figure in conservative circles, particularly after he publicly criticized the Justice Department for allegedly delaying its investigation into Hunter Bidens tax affairs. His outspoken nature on such a sensitive issue has garnered him both praise and scrutiny, reflecting the politically charged environment surrounding tax policy and enforcement.