IRS Leadership Shakeup Sparks High-Level Power Struggle

Clear Facts

• Gary Shapley was replaced as the acting IRS commissioner just three days after his appointment, following a power struggle between Treasury Secretary Scott Bessent and Elon Musk of the Department of Government Efficiency.
• Shapley, a longstanding IRS agent and whistleblower on Hunter Biden’s tax issues, was replaced by Michael Faulkender, Bessent’s deputy.
• Shapley and fellow agent Joseph Ziegler faced political persecution for their whistleblowing but were later hired as senior advisors at the Treasury Department.

In a surprising turn of events, Gary Shapley’s brief tenure as the acting commissioner of the IRS came to an abrupt end just three days after his appointment. This sudden change was reportedly due to a power struggle between Treasury Secretary Scott Bessent and Elon Musk of the Department of Government Efficiency.

According to sources familiar with the situation, Bessent raised concerns with President Donald Trump about Musk’s actions, which allegedly bypassed his office to secure Shapley’s position.

Shapley, known for his long-standing service at the IRS, had previously accused the Biden administration’s Department of Justice of delaying its investigation into Hunter Biden’s tax affairs. Despite his replacement, Bessent expressed confidence in his deputy, Michael Faulkender, to take over the role.

“Trust must be brought back to the IRS, and I am fully confident that Michael Faulkender is the right man for the moment,” Bessent stated.

The White House, through Press Secretary Karoline Leavitt, did not delve into specifics about the disagreement between Bessent and Musk. However, she acknowledged that “disagreements are a normal part of any healthy policy process,” emphasizing that all officials serve at President Trump’s discretion.

This incident is just one of several clashes involving Musk and members of Trump’s cabinet, highlighting ongoing tensions within the administration.

Shapley’s brief leadership is part of a series of changes at the IRS, following the resignation of previous Acting Commissioner Melanie Krause. Krause’s departure was linked to the Treasury Department’s decision to share data with Immigration and Customs Enforcement.

Despite his short stint, Bessent commended Shapley for his “passion and thoughtfulness” in reforming the IRS, noting that Shapley remains a key advisor at the Treasury.

Shapley and fellow IRS special agent Joseph Ziegler had been actively investigating Hunter Biden’s tax issues before blowing the whistle in 2022. Their efforts revealed potential tax evasion on Hunter Biden’s $8.3 million income.

For their whistleblowing, both agents reportedly faced “political persecution by the IRS,” which included attempts to tarnish their reputations. However, the Treasury Department later restored their careers by appointing them as senior advisors.

Both agents also informed lawmakers about the discouragement they faced when investigating former President Joe Biden’s financial dealings, which involved Hunter and their family business entities.

Bessent assured that after Shapley and Ziegler complete their investigation, they will hold senior government roles to ensure their findings lead to meaningful policy changes.

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