Michael Faulkender Appointed Acting IRS Chief Amid Shapley Exit and Controversy

U.S. Treasury Secretary Scott Bessent confirmed the appointment of Deputy Treasury Secretary Michael Faulkender as acting IRS commissioner, replacing Gary Shapley after less than three days in the role. The leadership shift comes amid political tension and concerns over the agency’s direction.

Bessent, in a post on X, emphasized the need to restore trust in the Internal Revenue Service, stating that Faulkender is “the right man for the moment.” Faulkender previously led early COVID-19 relief efforts during Trump’s first term, earning praise for his experience in managing high-level government operations.

Shapley, an IRS special agent known for his whistleblower testimony about the Hunter Biden tax investigation, was initially appointed at the suggestion of Elon Musk through unofficial channels. The New York Times reported that Bessent was unaware of the move, which reportedly came from Musk’s “Department of Government Efficiency.” After learning of the situation, Bessent sought and received Trump’s approval to reverse the appointment.

Despite being replaced, Shapley will remain at the IRS and continue leading a year-long reform initiative with fellow agent Joseph Ziegler. Bessent praised Shapley’s commitment to meaningful IRS reform, noting his continued role as a senior advisor.

A Treasury spokesperson declined to comment on the Times report but confirmed Faulkender’s interim appointment and his goal to counter the "politicization" of the IRS. The spokesperson also did not address whether the IRS would pursue action against Harvard University’s tax-exempt status, a topic recently criticized by Trump.

Former U.S. Representative Billy Long awaits Senate confirmation as the next permanent IRS commissioner, following the resignation of Melanie Krause, who stepped down after the IRS agreed to share data with federal immigration agents.