Acting IRS Chief Gary Shapley Ousted Abruptly \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ Gary Shapley, the IRS whistleblower tied to the Hunter Biden case, has been removed shortly after becoming acting commissioner. He will be replaced by Deputy Treasury Secretary Michael Faulkender. The decision adds to ongoing IRS instability in Trump’s second term.
Quick Looks
- Gary Shapley, IRS whistleblower in the Hunter Biden case, has been removed as acting commissioner
- Deputy Treasury Secretary Michael Faulkender will replace him, becoming the fourth IRS leader since January
- Shapley’s sudden appointment was reportedly orchestrated by Elon Musk, sparking internal controversy
- Treasury Secretary Scott Bessent opposed Shapley’s installation, reportedly blindsided by the decision
- Elon Musk responded to criticism of Bessent by calling the situation “troubling” on X
- Shapley replaced Melanie Krause, who resigned after DHS tax data sharing controversy
- Krause had previously succeeded Douglas O’Donnell, who retired in February after 40 years of service
- Trump’s official IRS nominee, former Congressman Billy Long, awaits Senate confirmation
Deep Look
In a fresh wave of turmoil within the Internal Revenue Service, acting IRS Commissioner Gary Shapley, who recently gained prominence as a whistleblower in the Hunter Biden tax investigation, has been removed from his post only days after his promotion. According to three individuals familiar with the decision—who spoke to the Associated Press under anonymity—Shapley will be replaced by Deputy Treasury Secretary Michael Faulkender.
Shapley’s rapid removal underscores the continued instability at the helm of the IRS during the early stages of President Donald Trump’s second term in office. Faulkender will be the fourth person to lead the agency since January, reflecting internal rifts and mounting political pressure tied to personnel decisions and controversial policy directions.
Controversial Appointment and Fallout
Shapley rose to national prominence after testifying before Congress about alleged mishandling of the investigation into Hunter Biden, the son of President Joe Biden. His testimony was championed by Republicans as part of their ongoing probe into the Biden family’s business dealings.
His elevation to acting IRS commissioner, however, reportedly blindsided top officials at the Treasury Department. Sources told The New York Times that Treasury Secretary Scott Bessent had not been informed of the decision and attributed the move to the influence of Elon Musk—Trump adviser and head of the Department of Government Efficiency. Musk has reportedly clashed with several Cabinet officials over loyalty issues within the administration.
On Thursday night, Musk reacted to a post on X (formerly Twitter) by far-right activist Laura Loomer, who accused Bessent of working with a “Trump hater” on financial literacy initiatives. “I am going to personally tell President Trump and personally show him these receipts,” Loomer wrote, condemning Bessent. Musk reposted the message and simply commented: “troubling.”
Rapid Leadership Changes
Shapley was appointed following the resignation of acting IRS Commissioner Melanie Krause. Krause reportedly stepped down over a controversial data-sharing deal between the IRS and the Department of Homeland Security (DHS), which allowed DHS to access immigrant tax data to assist with deportation efforts. That partnership triggered backlash from privacy advocates and immigrant rights groups.
Krause herself had taken over from longtime IRS official Douglas O’Donnell, who retired in February after a four-decade career. His departure followed a firestorm of criticism over the IRS granting the Department of Government Efficiency (DOGE) unprecedented access to sensitive taxpayer information.
With Shapley now ousted and Faulkender stepping in, the IRS continues to cycle through leadership at a time when stability is critical for overseeing tax policy and enforcement nationwide.
Trump’s Official Pick Still Pending
Meanwhile, Trump’s formal nominee to head the IRS, former Missouri Congressman Billy Long, has yet to receive Senate confirmation. Long, known for his staunch conservative credentials and loyalty to Trump, is expected to support the administration’s agenda of reforming—or in some cases dismantling—government institutions perceived as disloyal.
In the absence of a permanent commissioner, the revolving door at the IRS is raising concerns across Washington. Analysts warn that such frequent leadership turnover could erode public confidence in the agency’s integrity and weaken its ability to implement consistent tax policy.
Shapley’s Whistleblower Legacy
Shapley’s legacy as a whistleblower remains controversial. While some lawmakers praised his efforts to bring transparency to the Hunter Biden investigation, critics say his alignment with political factions undermines the impartiality expected from federal tax officials.
His brief tenure highlights a broader trend within the Trump administration’s second term: a zero-tolerance approach to perceived disloyalty and an aggressive reshuffling of federal leadership. With Elon Musk’s growing influence in shaping internal personnel decisions, even high-ranking positions such as IRS commissioner appear subject to sudden political shifts.
As Faulkender takes over, all eyes will be on how he navigates the mounting scrutiny, restores confidence in the agency, and addresses unresolved tensions surrounding privacy, enforcement, and political influence in the IRS’s operations.
Acting IRS Chief Acting IRS Chief
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