In a recent development, the acting IRS commissioner, who had taken the role just days before, is stepping down amid ongoing investigations into Hunter Biden’s tax affairs. Gary Shapley, previously involved in congressional testimony concerning the business activities of Joe Biden’s son, is being replaced by Deputy Treasury Secretary Michael Faulkender. This information comes from multiple sources familiar with the situation.
Faulkender will become the fourth leader of the IRS since President Donald Trump began his second term in January, highlighting the instability within the agency. Shapley’s brief tenure is marked by a wave of departures among high-ranking officials, driven by various factors including disagreements over Trump’s policy decisions, layoffs, and demotions.
The decision to remove Shapley and appoint Faulkender was initially reported by The New York Times. It revealed that Treasury Secretary Scott Bessent had expressed concerns to President Trump about Shapley’s appointment, which reportedly occurred without Bessent’s knowledge and was allegedly influenced by Trump adviser Elon Musk. Musk, who leads the Department of Government Efficiency, has previously clashed with Cabinet officials.
Musk recently shared a social media post from Laura Loomer, a right-wing activist critical of certain administration figures for perceived disloyalty to Trump. Loomer accused Bessent of collaborating with a “Trump hater” on financial literacy initiatives, to which Musk responded by calling the situation “troubling.”
Shapley was initially brought in to succeed Melanie Krause, who resigned as acting IRS commissioner over a contentious agreement between the IRS and the Department of Homeland Security. This agreement involved sharing immigrants’ tax data with Immigration and Customs Enforcement, facilitating the identification and deportation of undocumented individuals. Krause had replaced Douglas O’Donnell, who retired in February after 40 years of service, amid controversy surrounding the Department of Government Efficiency’s access to taxpayer data.
