- The acting head of the Internal Revenue Service (IRS) is reportedly being replaced amid a dispute between Treasury Secretary Scott Bessent and Trump advisor Elon Musk. President Donald Trump reportedly gave Bessent permission to seek a new acting head of the agency.
- Trump appointed Acting IRS Commissioner Gary Shapley on Tuesday, April 15, after Melanie Krause resigned, following a request for the IRS to hand over taxpayer information to U.S. Immigration and Customs Enforcement (ICE).
- The New York Times reported the acting head of the agency will only serve until and if Trump’s nominee to lead the I.R.S., Billy Long, is approved by U.S. Senate.
Full Story
The acting head of the Internal Revenue Service (IRS) is being ousted and replaced after Treasury Secretary Scott Bessent objected to the latest interim commissioner, Gary Shapley, being handed the reins without his consultation or direct knowledge. The revelations come in a report by The New York Times on Friday, April 18, citing five people familiar with the matter, who requested to remain anonymous.
What happened?
The Times reported, Bessent suspected Elon Musk purposely kept him in the dark over efforts to get Shapley installed as the acting head of the IRS, even though the agency reports to Bessent.
Sources said Bessent believes Musk’s Department of Government Efficiency (DOGE) sent the appointment through secretive White House channels to avoid having to get Bessent’s consultation or approval.
Who will be the next acting head of the IRS?
Bessent reportedly now has President Donald Trump’s approval to find a new acting commissioner of the IRS, which The Times reported is likely Deputy Secretary of the Treasury Michael Faulkender.
Faulkender would stay as head of the agency as Trump waits for his nominee to permanently fill the role, former U.S. lawmaker Billy Long. Long still needs approval from the U.S. Senate.
What is the background on the situation?
Trump just picked Shapley on Tuesday, April 15, to take over as head of the agency after the previous interim commissioner, Melanie Krause, resigned. Musk reportedly forced her out.
Krause decided to leave the agency after the Treasury Department complied with a request from U.S. Immigration and Customs Enforcement (ICE) to provide IRS taxpayer information to help deport undocumented individuals.
How is the White House responding?
In a statement to The Times, White House Press Secretary Karoline Leavitt did not reveal details of the reported disagreement between Musk and Bessent.
“It’s no secret President Trump has put together a team of people who are incredibly passionate about the issues impacting our country,” Leavitt said. “Disagreements are a normal part of any healthy policy process, and ultimately, everyone knows they serve at the pleasure of President Trump.”
The Times reported Shapley was still working for the IRS as of Friday morning.
What’s the latest on the dispute?
Meanwhile, the dispute between Musk and Bessent broke into the public sphere on Thursday, April 17, as Musk echoed an attack from Trump ally Laura Loomer, questioning Bessent’s commitment to the president’s agenda.
