Showdown between Musk and Treasury Secretary as IRS head is ousted: report

18 April

U.S. Treasury Secretary Scott Bessent delivers remarks to the American Bankers Association summit in Washington, D.C., U.S., April 9, 2025. REUTERS/Kevin Mohatt

The newly-appointed acting commissioner of the Internal Revenue Service (IRS), Garey Shapley, is reportedly set to be replaced following complaints from Treasury Secretary Scott Bessent to President Donald Trump.

The New York Times reported Thursday that Bessent expressed concerns the agency's new leader was appointed without his awareness and influenced by tech billionaire and Department of Government Efficiency (DOGE) head Elon Musk. The Times report cited five sources familiar with the situation who confirmed the development.

Shapley, the IRS supervisor known for voicing concerns about alleged political influence in the tax investigation of former President Joe Biden's son, Hunter Biden, was appointed as the agency's acting commissioner on Tuesday.

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Melanie Krause, the previous head of the IRS, had resigned following the Treasury Department's decision to use IRS data to assist Immigration and Customs Enforcement (ICE) in deporting undocumented immigrants. She had informed her colleagues earlier this month that she would accept the administration's deferred resignation offer, but continued in her position until the DOGE head implemented the change on Tuesday.

"Mr. Bessent believed that Mr. Musk had done an end run around him to get Gary Shapley installed as the interim head of the I.R.S., even though the tax collection agency reports to Mr. Bessent. Mr. Musk’s Department of Government Efficiency pushed the appointment through White House channels, but Mr. Bessent was not consulted or asked for his blessing, the people said. They spoke on condition of anonymity to discuss the private conversations," the Times report says.

Michael Faulkender is likely to replace the current head, per the Times. He will assume the position until the Senate confirms former Congressman Billy Long, the president’s nominee for the permanent role.

In 2023, Shapley received praise from conservatives for his public claim that the Justice Department was deliberately delaying the investigation into Hunter Biden's taxes. However, some of his allegations were denied by other officials, including the special counsel leading the case.

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AlterNet reached out to the Treasury Department for comment.

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