Trump’s IRS Pick Ousted Just Days After Appointment, Faulkender Steps In Amid Treasury Tensions

A dramatic shakeup at the IRS has unfolded just days after former President Donald Trump appointed Gary Shapley as acting commissioner. Backed by Republican allies and billionaire Elon Musk, Shapley’s appointment was short-lived. By week’s end, he was out — marking yet another leadership change at the embattled tax agency.

Trump signed off on Shapley’s appointment on Tuesday, catching some in the Treasury Department and the IRS off guard. His selection stirred immediate concern among career civil servants and drew quiet resistance from Treasury Secretary Scott Bessent’s office, which had not signed off on the move. Bessent, who was abroad at the time, had reportedly objected to Shapley’s appointment from the outset.

By Friday, Shapley was out, and Michael Faulkender, the Treasury’s deputy secretary, was tapped to take over the role, sources confirmed to CNN.

Shapley is best known for his involvement in the high-profile Hunter Biden tax investigation. A key whistleblower in the case, he testified to Congress alleging political interference in the Justice Department’s handling of the matter — a claim that became a rallying cry for Republicans.

His sudden rise to acting IRS commissioner had been celebrated by some in the GOP. Outgoing acting commissioner Melanie Krause even announced the leadership change in an internal agency email midweek, stepping down herself in the process.

But within just a few days, the tide turned.

On Friday, Secretary Bessent took to X (formerly Twitter) to reaffirm his commitment to restoring trust in the IRS, calling Faulkender “the right man for the moment.” He also made it clear that Shapley remains a valued advisor at Treasury and is expected to play a senior role once an internal review into political interference allegations wraps up.

In a statement, a Treasury spokesperson emphasized that Faulkender will lead the IRS temporarily as the agency undergoes a “transition toward a more efficient, more effective” operation. They also urged Congress to move swiftly in confirming permanent leadership.

Faulkender is no stranger to Treasury. He served as assistant secretary for economic policy during Trump’s first term and was recently confirmed as deputy secretary in a 53-43 Senate vote along party lines.

In his confirmation documents, Faulkender stressed the need for even-handed enforcement of the tax code and expressed concern over aggressive audits impacting everyday taxpayers and small businesses. He also sought to ease Democratic fears that Trump might use the IRS for political purposes, pledging to uphold taxpayer privacy and follow all relevant laws.

“I will support the fair and impartial implementation of our nation’s tax laws,” Faulkender wrote in March. “I am absolutely committed to upholding taxpayer privacy rights.”

He further stated that any access to sensitive IRS data — including by Musk’s team under the Department of Government Efficiency — would remain tightly controlled and legally compliant, despite recent court-ordered changes.

With Shapley’s brief stint included, the IRS has now seen five different leaders this year alone. Trump’s pick for a permanent commissioner, former Missouri Rep. Billy Long, is still awaiting Senate confirmation.

As the IRS works to stabilize under Faulkender’s temporary leadership, questions remain about the future direction of the agency — and the political crosswinds shaping it.