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Shapley Removed as Acting IRS Chief Amidst Power Dynamics
WASHINGTON, D.C. — Gary Shapley, who gained prominence among conservatives for disclosing alleged preferential treatment by the Justice Department in the Hunter Biden investigation, has been removed from his position as acting IRS commissioner. Sources with knowledge of the situation revealed to The Post on Friday that this change occurred mere days after his appointment to the role.
Treasury Secretary Installs Faulkender Following Internal Dispute
Treasury Secretary Scott Bessent has replaced Shapley with Deputy Treasury Secretary Michael Faulkender. This personnel change reportedly stems from a power struggle involving influential Trump advisor Elon Musk regarding the selection for the IRS leadership.
The New York Times initially reported this administrative shift.
Musk’s DOGE Advocated for Shapley
Musk’s Department of Government Efficiency (DOGE) had reportedly urged the White House to appoint Shapley to head the Internal Revenue Service (IRS).
Decision-Making Conflict Leads to Faulkender’s Appointment
However, Bessent reportedly felt excluded from the decision-making process. Consequently, he appealed to President Trump to approve Faulkender for the position instead.
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Faulkender to Serve as Interim Head Until Long’s Confirmation
The newly appointed acting commissioner, Faulkender, is expected to serve in this temporary capacity while former GOP Congressman Billy Long undergoes vetting and Senate confirmation to permanently lead the tax agency.
White House Acknowledges Policy Disagreements
“It’s widely understood that President Trump has assembled a team of individuals deeply committed to addressing critical national issues,” stated White House press secretary Karoline Leavitt.
“Disagreements are a typical aspect of any robust policy development process, and ultimately, everyone recognizes that they serve at the discretion of President Trump.”
Shapley’s Prior Role and Krause’s Departure
Shapley’s brief tenure as acting IRS head followed his appointment last month as a senior advisor to Bessent. He assumed the acting commissioner role after Melanie Krause resigned due to disagreements with the treasury secretary concerning the sharing of tax information related to undocumented immigrants with the Department of Homeland Security.
Although Krause departed the IRS on Tuesday, Shapley will continue to hold a senior position within the commissioner’s office despite his removal from the interim leadership role.
Musk’s Public Criticism Preceded Demotion
Prior to Shapley’s apparent demotion, Musk had publicly voiced criticism of Bessent.
On Thursday evening, the Tesla and SpaceX CEO posted on X, responding to commentator Laura Loomer, that Bessent’s meetings earlier this month with an individual purportedly critical of President Trump were “troubling.”
This line of criticism emerged after Loomer’s White House meeting, which preceded the dismissal of numerous National Security Council staff members due to perceived insufficient loyalty to the president’s agenda.
Musk Favored Lutnick for Treasury Post
Musk had previously supported current Commerce Secretary Howard Lutnick for the Treasury Secretary position, describing Bessent as a “business-as-usual choice.”
Musk wrote on X before Bessent’s nomination that Lutnick, in contrast, would “actually implement change.”
Shapley’s Testimony on Hunter Biden Probe
Shapley, along with fellow IRS whistleblower Joseph Ziegler, testified before Congress in July 2023. They asserted that the Justice Department under former President Joe Biden had deliberately slowed down a criminal investigation into his son Hunter Biden and obstructed their tax team from pursuing specific investigative avenues.
Claims of DOJ Interference in Biden Investigation
Key allegations included claims that Biden-appointed US attorneys in Washington D.C. and Los Angeles declined to press charges against Hunter Biden. Furthermore, then-Assistant Delaware US Attorney Lesley Wolf allegedly discouraged investigators from exploring lines of inquiry related to Joe Biden, reportedly stating at one point that there was “no specific criminality.”
The Post has contacted both the Treasury Department and a representative for Musk seeking comments on these developments.