In an extraordinary week for the Internal Revenue Service (IRS), the agency witnessed its third acting commissioner appointment, highlighting internal conflicts within the Trump administration.
On April 18, 2025, Deputy Treasury Secretary Michael Faulkender was appointed as the new acting IRS commissioner, replacing Gary Shapley, who had served in the role for just two days. Shapley’s brief tenure followed the resignation of Melanie Krause earlier that week.
The rapid leadership changes stem from a reported power struggle between Treasury Secretary Scott Bessent and entrepreneur Elon Musk. Shapley, known for his role as a whistleblower in the Hunter Biden tax investigation, was reportedly appointed at Musk’s recommendation without Bessent’s consultation.
Bessent expressed his dissatisfaction with the appointment process and subsequently named Faulkender as acting commissioner. In a statement, Bessent emphasized the need to restore trust in the IRS and expressed confidence in Faulkender’s leadership.
Despite his removal from the acting commissioner role, Shapley will continue to serve as a senior advisor within the Treasury Department, focusing on IRS reforms alongside fellow whistleblower Joseph Ziegler.
These leadership upheavals coincide with the IRS’s plans for significant staff reductions, including a proposed 75% cut in the Office of Civil Rights and Compliance. The layoffs aim to increase efficiency but have raised concerns about the agency’s capacity to fulfill its responsibilities.
The permanent IRS commissioner nominee, former Representative Billy Long, awaits Senate confirmation amid scrutiny over his past financial dealings. Until then, Faulkender will lead the agency during this period of transition.
