Gary Shapley, the acting commissioner of the Internal Revenue Service, is being replaced after Treasury Secretary Scott Bessent informed President Donald Trump that Shapley was appointed without his knowledge and at the direction of Elon Musk. Bessent received approval from Trump to reverse the decision, and Deputy Treasury Secretary Michael Faulkender is expected to take over as acting head of the IRS. This change was first reported by the New York Times.
Shapley took over from Melanie Krause, who recently resigned over a data-sharing agreement with the Department of Homeland Security. This agreement allows immigration authorities to verify personal information against tax filings. There have been public signs of conflict between Bessent and Musk, with Musk reposting criticism of Bessent on social media.
Trump has expressed confidence in Musk’s leadership of the Department of Government Efficiency and stated that Musk has not asked him for any favors. Trump’s nominee for permanent IRS commissioner, Billy Long, has not yet had a confirmation hearing in the Senate. The White House did not immediately respond to requests for comment on Shapley’s replacement.
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