Gary Shapley, who was recently appointed as acting commissioner of the Internal Revenue Service, was swiftly replaced last week in a tumultuous reshuffling involving tech giant Elon Musk and high-ranking government personnel.

Michael Faulkender has been named the new acting head of the IRS after Musk's input on Shapley's prior appointment sparked a dispute with Treasury Secretary Scott Bessent, as Breitbart reports.

The recent developments unfolded shortly after Shapley, originally installed as the IRS acting commissioner, faced a sudden change in his role just days into his new position.

In his place, Deputy Treasury Secretary Michael Faulkender stepped up to lead the agency. This shift was reportedly orchestrated by President Donald Trump following a conflict regarding Musk's role in the appointment of Shapley.

Clash over appointment ensues

Sources state that Musk's influence in advocating for Shapley fueled tensions within the corridors of power, especially with Bessent.

The clash came to light after Bessent expressed concerns about Musk's direct intervention with President Trump, arguing it was inappropriate for the technology entrepreneur to have a say in such a significant appointment.

Bessent, responsible for overseeing the IRS as part of his Treasury Department duties, had initially appointed Shapley and another whistleblower, Joseph Ziegler, as senior advisors. Their roles were meant to bring insights and reforms to the IRS, according to Bessent's vision.

Despite being replaced, Shapley maintains his position as a senior advisor at the Treasury.

In support of Shapley's contributions, Bessent remarked, “Gary Shapley’s passion and thoughtfulness for approaching ways by which to create durable and lasting reforms at the IRS is essential to our work, and he remains among my most important senior advisors.”

Faulkender receives Bessent's vote of confidence

While the circumstances around Shapley's reassignment seem turbulent, Bessent has expressed reassurance in the newly appointed acting commissioner.

Highlighting Faulkender's capabilities, Bessent stated, “Trust must be brought back to the IRS, and I am fully confident that Michael Faulkender is the right man for the moment.” These remarks underscore Bessent’s trust in Faulkender’s leadership amid the agency's current uncertainties.

As this transition unfolded, Shapley’s past involvement in the Hunter Biden investigation surfaced as part of the broader context influencing his departure.

Nonetheless, Shapley's ongoing work remains critical to the Treasury's objectives, with Bessent committing to future roles for Shapley and Ziegler to facilitate impactful reform efforts.

Future developments in reform process awaited

The historical precedent for this dispute dates back to the resignation of Kerr Melanie Krause, the former acting commissioner.

Krause stepped down following a mutually agreed decision to share Internal Revenue Service data with Immigration and Customs Enforcement. This move, coupled with the recent reshuffle, indicates a period of significant change and adaptation within the IRS.

Across the board, Bessent emphasizes continuity and reform as central to the Treasury Department’s mission. In a statement regarding ongoing efforts, he noted: “After Gary and Joseph Ziegler complete their ongoing year-long investigation, I will ensure they are both in senior government roles that will enable the results of their investigation to translate into meaningful policy changes.”

Overall, the replacement of Gary Shapley as IRS acting commissioner underscores a complex interplay of influences from both political and private sectors.

As the situation develops, the focus remains on stabilizing leadership at the IRS to achieve lasting institutional change, reflecting both government priorities and the pressing needs for reform within the agency.