The Internal Revenue Service (IRS) in the US has undergone a change in leadership, with Michael Faulkender stepping in as the new acting commissioner, reported The New York Times.
This marks the third acting leader for the agency within a single week, following a reported power struggle involving Treasury Secretary Scott Bessent and entrepreneur Elon Musk.
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Faulkender replaces Gary Shapley, whose appointment by President Donald Trump sparked controversy.
The Treasury Department, which oversees the IRS, confirmed the change. Bessent had expressed concerns to the president that Musk influenced the appointment of Shapley, bypassing his authority.
The role of IRS commissioner remains in an acting capacity as former Representative Billy Long awaits Senate confirmation.
Despite the upheaval, Bessent commended Shapley for his dedication and confirmed that Shapley, along with Joseph Ziegler, an IRS critic of the Hunter Biden tax investigation, will take on senior roles within the Treasury Department or the IRS.
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By GlobalDataThe White House press secretary Karoline Leavitt did not comment on the specifics of the disagreement.
She said: “it’s no secret President Trump has put together a team of people who are incredibly passionate about the issues impacting our country.”
“Disagreements are a normal part of any healthy policy process, and ultimately everyone knows they serve at the pleasure of President Trump.”
Shapley was initially chosen by President Trump to lead the IRS after Melanie Krause resigned.
Krause’s departure was prompted by the Treasury Department’s decision to use IRS data to assist Immigration and Customs Enforcement with deportations of undocumented immigrants.
The conflict between Musk and Bessent became public when Musk shared a post from researcher Laura Loomer, accusing Bessent of collusion.
This leadership turmoil coincides with the IRS preparing for its first wave of nonvoluntary layoffs as part of a government-wide reduction in force, targeting an 80% workforce cut in its Office of Civil Rights and Compliance.
The office has already trimmed its staff headcount by 5% this year through attrition and deferred resignation offers.
