Just days after President Donald Trump appointed Gary Shapley as acting commissioner of the Internal Revenue Service (IRS) — with support from Elon Musk and Republican lawmakers — Shapley is already out, multiple sources told CNN.
The shake-up represents a significant win for Treasury Secretary Scott Bessent, whose office reportedly opposed Shapley’s appointment from the start. Stepping in to fill the role is Michael Faulkender, currently the Treasury Department’s deputy secretary.
A Surprise Exit After a Controversial Pick
Shapley’s appointment earlier this week had caused concern within the IRS, especially among career civil servants, according to internal sources. His sudden rise was seen as politically charged, largely due to his previous role in the controversial Hunter Biden tax probe, in which he served as a whistleblower alleging DOJ interference.
The move appeared to take shape while Bessent was out of the country, and was confirmed in an agency-wide email by outgoing acting commissioner Melanie Krause on Wednesday. But by Friday, the decision had been reversed.
“Trust must be brought back to the IRS,” Bessent wrote on X, signaling confidence in Faulkender, whom he called “the right man for the moment.”
While Shapley will no longer lead the agency, Bessent noted that he remains one of his senior advisors, and hinted at a future high-level government role following Shapley’s ongoing internal review of the Hunter Biden case.
Who Is Michael Faulkender?
Faulkender is a familiar face at Treasury. He served as assistant secretary for economic policy during Trump’s first term and was confirmed in March in a party-line Senate vote (53-43) to become deputy secretary under Bessent in Trump’s second term.
Now, he becomes the fifth person to head the IRS this year, a reflection of the turmoil facing the tax agency amid ongoing political scrutiny and leadership instability. Trump’s permanent pick for commissioner — former Rep. Billy Long (R-MO) — is still awaiting Senate confirmation.
Faulkender’s Vision for the IRS
In written statements to the Senate, Faulkender emphasized fairness and impartiality in enforcing the tax code. He voiced concern over aggressive audits targeting ordinary taxpayers and small businesses, and stressed the need to safeguard privacy and resist improper political interference.
“The protection of tax return information is essential to taxpayer confidence,” he wrote, pledging to uphold privacy laws and comply with restrictions on data access — including those related to the Department of Government Efficiency (DOGE) and Elon Musk’s team, who have faced limitations in accessing IRS databases.
Faulkender also assured lawmakers that he would enforce the tax code independently, despite Democratic concerns that the Trump administration could weaponize the IRS for political gain.
“If confirmed, I will support the fair and impartial implementation of our nation’s tax laws,” he said. “I will comply with all relevant laws.”
What’s Next?
While Shapley’s exit brings a temporary resolution to the internal conflict, it also highlights deep divisions within the Treasury and raises questions about the political influence surrounding IRS leadership.
The Biden administration and congressional Democrats are now watching closely, as Trump’s second-term appointments continue to reshape key government agencies — often in highly controversial fashion.