Trump removes his chosen interim IRS commissioner mere days following his designation
Rewritten Article:
Gary Shapley, tapped by President Donald Trump as acting commissioner of the Internal Revenue Service (IRS) with the backing of Elon Musk, has been axed from the role, according to sources talking to CNN. This move appears to be a win for Treasury Secretary Scott Bessent's office, which had reportedly expressed reservations about Shapley's appointment. Michael Faulkender, the deputy secretary of the Treasury, is stepping in to fill the position.
Shapley had enjoyed support from Musk and congressional Republicans, but Bessent's office had harbored doubts, several sources familiar with the situation told CNN. Bessent was out of the country when Trump appointed Shapley.
The sudden departure of Shapley, first reported by The New York Times, ends an exciting, turbulent week for the IRS, which is part of the Treasury Department. Trump authorized Shapley's appointment on Tuesday, prompting panic among some career civil servants.
Shapley was instrumental in leading the Hunter Biden investigation and had testified as a whistleblower to Congress, claiming partisan bias among justice officials had hampered the investigation into the son of President Joe Biden. Republicans celebrated Shapley's ascension at the IRS after Trump previously named him deputy chief of IRS criminal investigations.
Melanie Krause, the outgoing acting commissioner, announced Shapley's promotion in an agency-wide email on Wednesday, as per three sources. However, just days after his appointment, Shapley found himself out of the top leadership role.
Bessent stated on Friday that "trust must be restored to the IRS," expressing confidence that Faulkender is the right man for the job. He also praised Shapley, assuring that he will continue in a senior advisory role at Treasury once he completes his ongoing review of what the administration terms as political interference in the Hunter Biden tax fraud investigation.
A Treasury spokesperson added that Faulkender is the preferred choice of the US Treasury to temporarily lead the IRS during its current transformation into a more efficient and effective agency to better serve the American people. They also urged Congress to swiftly confirm permanent leadership at the IRS to ensure it can best serve taxpayers moving forward.
With Shapley's brief tenure, Faulkender will become the fifth individual to head the beleaguered tax-collection agency this year. Trump's pick for full-time commissioner, former Missouri Rep. Billy Long, awaits confirmation in the GOP-led Senate.
CNN reached out to the IRS for comment.
During Trump's first term, Faulkender worked at the Treasury Department as assistant secretary for economic policy. He was confirmed by the Senate in a 53-43 party line vote to be the deputy secretary under Bessent during Trump's second term.
Faulkender's responses to written questions from senators shed light on his views regarding the IRS' top priorities. On March 6, he wrote that the agency should enforce the tax code in an unbiased manner, and raised concerns about overly aggressive and poorly targeted audits that burden ordinary taxpayers and small businesses.
He also offered reassurances to Democratic concerns that Trump might pressure the IRS to fulfill political objectives, including the possibility of ordering audits of perceived adversaries.
"I will support the fair and impartial implementation of our nation's tax laws, including the critical safeguards against improper interference with taxpayer audits and investigations," Faulkender said, later adding, "I will comply with all relevant laws."
He assured the protection of taxpayer privacy and promised that the Treasury Department "will comply with" court orders restricting the Department of Government Efficiency from accessing highly sensitive IRS databases. Some of those limitations on Elon Musk's team have subsequently been relaxed while legal cases are in progress.
"The protection of tax returns and taxpayer information is essential to preserving taxpayers' confidence in the IRS and the tax system in general," Faulkender wrote. "I am absolutely dedicated to upholding taxpayer privacy rights... If confirmed, I will ensure that any access is in compliance with the statutory protections found in the tax code."
CORRECTION: This story has been updated to correctly state that Shapley remains an IRS criminal investigator.
Insights:
Upon reviewing the available information, it appears that Michael Faulkender's tenure as acting IRS chief is targeting to establish stability within the agency during the ongoing leadership turmoil. Given the context, Faulkender's priorities are likely to revolve around enhancing transparency, rebuilding public trust, and demonstrating impartiality in reestablishing the agency's effectiveness.
While specific views on overly aggressive audits, political interference, and taxpayer privacy may not be detailed in his written responses to senators, Faulkender's temporary leadership role implies a commitment to navigating these issues prudently. The ongoing review of the Hunter Biden tax fraud investigation signifies a focus on minimizing political influence within the IRS.
In his responses, Faulkender has emphasized the importance of fair enforcement of tax laws, the protection of taxpayer privacy, and following all relevant legal restrictions. This stance indicates a focus on upholding the integrity of the IRS and preserving public trust throughout this transition period.
- Elon Musk had previously supported Gary Shapley for the acting commissioner role of the Internal Revenue Service (IRS), but he was recently removed from the position, according to CNN sources.
- Michael Faulkender, who has expressed concerns about overly aggressive and poorly targeted audits that burden ordinary taxpayers and small businesses, is now temporarily leading the IRS as the agency's fifth acting head this year.
- Faulkender's tenure as acting IRS chief aims to establish stability within the agency and likely focuses on enhancing transparency, rebuilding public trust, and demonstrating impartiality in reestablishing the agency's effectiveness.
- Faulkender has promised protection of taxpayer privacy and assured that the Treasury Department will comply with court orders restraining access to highly sensitive IRS databases, especially in reference to Elon Musk's team and the ongoing cases.
