In a sudden shake-up, the Trump administration has removed the acting head of the Internal Revenue Service merely three days after he took the job. The move comes as part of a growing feud between two of President Trump’s top Cabinet secretaries.
Gary Shapley, a longtime IRS official and key figure in the Hunter Biden investigation, was dismissed Friday after clashing with leaders at the Treasury Department and the newly created Department of Government Efficiency. According to reports, Treasury Secretary Scott Bessent complained directly to President Trump that Government Efficiency Secretary Elon Musk pushed Shapley into the top IRS role without proper clearance.
“The IRS must regain the public’s trust,” Bessent said in a statement posted to social media. He announced that Deputy Treasury Secretary Michael Faulkender would replace Shapley as acting commissioner, adding that he had “full confidence” in Faulkender’s leadership.
White House Press Secretary Karoline Leavitt did not deny tensions within the administration but said internal disagreements are nothing new. “Disagreements are a normal part of any healthy policy process,” she said. “Ultimately, everyone serves at the pleasure of President Trump.”
This isn’t the first time Musk has clashed with other agency heads. In March, Politico reported that Musk’s efforts to slash the State Department’s budget put him at odds with Secretary of State Marco Rubio and other national security officials, noted The Daily Caller.
Shapley’s exit is the latest in a string of rapid leadership changes at the IRS. He had taken over from Melanie Krause, who stepped down after Treasury agreed to share taxpayer information with immigration authorities—an unpopular decision that sparked resignations inside the agency. Krause had herself replaced Douglas O’Donnell, another interim leader.
Shapley made national headlines in 2022 when he and fellow IRS agent Joseph Ziegler accused the Justice Department of slow-walking its investigation into Hunter Biden’s $8.3 million in unreported income. The two men later testified before Congress, saying political pressure had been used to silence them.
He was later sued by Hunter Biden when he began a strategy of attacking whistleblowers while his father was president.
In a follow-up statement, the Treasury Department called their treatment “political persecution” and said both would have roles in shaping future reforms. “After Gary and Joseph complete their year-long investigation, I will ensure they are both in senior government roles that will enable the results of their investigation to translate into meaningful policy changes,” Bessent said.
Shapley’s removal marks the fourth time in less than a year the IRS has had a new commissioner, raising concerns about stability at the agency.
