The Internal Revenue Service (IRS) is undergoing a leadership change after Treasury Secretary Scott Bessent raised concerns to President Trump about the appointment of the agency’s interim head.
What Happened: Five individuals familiar with the situation revealed that Elon Musk influenced the appointment of Gary Shapley as the interim head of the IRS without consulting Bessent, according to a New York Times report on Friday.
This move bypassed Bessent, who oversees the tax agency. Musk’s Department of Government Efficiency facilitated the appointment through White House channels.
Bessent, feeling sidelined, secured Trump’s approval to reverse the decision. The new acting head is expected to be Michael Faulkender, the deputy secretary of the Treasury, until Billy Long is confirmed by the Senate for the permanent role.
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The IRS has seen frequent leadership changes under Trump, with Shapley being appointed after Melanie Krause resigned.
Krause left following an agreement to use IRS data for deportations, a move she opposed. Shapley, a longtime IRS agent, was praised by conservatives for his stance on the Justice Department’s handling of Hunter Biden’s tax investigation.
The dispute between Musk and Bessent became public when Musk amplified a post by Laura Loomer questioning Bessent’s loyalty to Trump.
Loomer’s post accused Bessent of meeting with a “Trump hater,” which Musk called “troubling.” The individual in question was John Hope Bryant, CEO of Operation HOPE, who clarified that his meeting with Bessent did not involve political discussions.
Why It Matters: The appointment of Gary Shapley as interim IRS head follows his whistleblower testimony alleging bias in the investigation of Hunter Biden.
This appointment aligns with Trump’s administration’s recent moves, including the IRS’s controversial decision to share undocumented taxpayers’ information with ICE, which has been criticized as part of a mass deportation effort.
Additionally, the IRS’s leadership changes occur amid speculation about the agency’s future. Grant Cardone, a prominent critic of the IRS, has suggested that Trump might eliminate the agency altogether.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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