In a swift and surprising turn of events, President Donald Trump has decided to replace Gary Shapley as the acting commissioner of the Internal Revenue Service (IRS), just three days after appointing him to the position. This decision, announced on Friday, April 18, 2025, marks another chapter in the ongoing turmoil at the IRS, which has seen a rapid succession of leadership changes in recent months.
Shapley, a former IRS criminal investigator known for his allegations that the Justice Department delayed the investigation into Hunter Biden, was appointed on April 15, 2025. His appointment triggered significant concern among career civil servants, particularly as it was perceived to be influenced by billionaire Elon Musk, who reportedly pushed for Shapley’s appointment through channels that bypassed Treasury Secretary Scott Bessent.
According to sources familiar with the situation, Bessent expressed his frustration to Trump regarding Musk’s role in the appointment, arguing that he had not been consulted prior to Shapley’s elevation. This internal conflict highlights the growing tension within the Treasury Department, particularly regarding Musk's influence through the U.S. Department of Government Efficiency (DOGE).
Following Shapley’s brief tenure, Michael Faulkender, the deputy secretary of the Treasury, has been named as the new acting commissioner. Faulkender’s appointment makes him the fifth individual to lead the beleaguered agency in just three months, following a series of resignations that have left the IRS in a state of disarray.
Before Shapley, the IRS was led by Melanie Krause, who stepped down after only two months amid controversies surrounding a deal to share taxpayer data with immigration agencies, a move that drew significant backlash. Krause succeeded Doug O’Donnell, who resigned shortly after the inauguration of Trump, and was preceded by Danny Werfel, who also resigned on Inauguration Day.
Faulkender, who was confirmed by the Senate in March 2025, has expressed a commitment to enforcing tax laws impartially and protecting taxpayer privacy. In written responses to senators, he stated, "If confirmed, I will support the fair and impartial implementation of our nation’s tax laws, including the important safeguards against improper interference with taxpayer audits and investigations." He also assured that the Treasury Department would comply with court orders restricting access to sensitive IRS databases.
The revolving door of leadership at the IRS has not only raised concerns about the agency’s stability but has also led to predictions of further turmoil. Reports indicate that around 22,000 IRS employees have signed up for the Trump administration’s latest resignation offer, exacerbating the agency's staffing issues and undermining its ability to effectively collect taxes.
Further complicating matters, the IRS is grappling with what tax attorneys have termed a "zombie" status, struggling to fulfill its responsibilities amid ongoing disruptions linked to DOGE initiatives. These initiatives have included proposals to create a unified data-sharing platform across federal agencies to combat tax and benefits fraud, which many agency officials warn could violate strict confidentiality laws surrounding taxpayer information.
In a broader context, the IRS is also facing allegations of internal pressure to assist those deemed "friends" of the president while potentially targeting political adversaries. This politicization of the agency has raised alarms among tax professionals and watchdogs, who fear that the IRS could become a tool for political retribution.
As the situation unfolds, Faulkender's leadership will be closely scrutinized, particularly given the significant challenges facing the IRS. The agency's ability to restore confidence among its employees and the public will depend on its capacity to navigate these turbulent waters while adhering to the principles of impartiality and fairness.
In light of these developments, the future of the IRS remains uncertain. With the appointment of Faulkender, stakeholders are watching closely to see how he will address the pressing issues at hand, including the ongoing staffing crisis and the need for modernization within the agency. As the IRS continues to grapple with these challenges, the implications for tax policy and enforcement in the United States could be significant.
This is a developing story and will be updated as more information becomes available.
