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Donald Trump is replacing the acting commissioner of the US Internal Revenue Service after treasury secretary Scott Bessent reportedly complained to the president that the agency head had been appointed without his knowledge and under the instruction of Doge leader Elon Musk.
According to a report from the New York Times published on Friday, Bessent believed that the Doge head “had done an end-run around him” to get Gary Shapley installed as the interim head of the IRS, despite the fact that the IRS reports to Bessent. The report cited five anonymous sources with knowledge of the situation.
The “department of government efficiency” reportedly pushed for the appointment of Shapley using channels within the White House. Bessent was not consulted about the installation, according to the report, which adds that Bessent received Trump’s approval to unwind the decision.
Michael Faulkender, the current deputy secretary of the US treasury, is expected to become the next acting head of the tax-collecting agency, the newspaper reported. Missouri congressman Billy Long is Trump’s nominee to hold the permanent position, and he would ultimately take over if approved by the Senate.
It was reported earlier this week by the Lever that Long had significant personal debt abruptly paid off using campaign contributions acquired after Trump announced his intention to nominate him to lead the IRS.
Shapley was chosen by Trump on Tuesday following the resignation of the previous interim head, Melanie Krause. Krause departed from her role at the IRS after the agency agreed to a deal to share tax information of undocumented immigrants living in the US with federal agents.
White House press secretary Karoline Leavitt told the New York Times in a statement: “It’s no secret President Trump has put together a team of people who are incredibly passionate about the issues impacting our country. Disagreements are a normal part of any healthy policy process, and ultimately everyone knows they serve at the pleasure of President Trump.”
On social media, the conflict between Bessent and Musk was visible as Musk elevated a post from far-right conspiracy theorist Laura Loomer in which she accuses Bessent of collaborating with a “pro-impeachment and pro-censorship Trump hater”, referring to the businessman John Hope Bryant. Musk agreed with Loomer, calling the collaboration “troubling”, on X, the platform he owns.
Amid the internal power struggles, the IRS has been reportedly planning to revoke Harvard’s tax-exempt status following pressure from the Trump administration, despite it being against the law for the president to direct the IRS to conduct an investigation or audit.
