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Trump sacks acting IRS chief after Bessent complained about Musk's involvement in the appointment

FP News Desk April 19, 2025, 16:32:04 IST

US President Donald Trump fired IRS acting commissioner Gary Shapley after Treasury Secretary Scott Bessent complained about not being informed about his appointment. The development came amid brewing animosity between Bessent and Musk

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Gary Shapley, who has served as the acting commissioner of the IRS. File Image / AP
Gary Shapley, who has served as the acting commissioner of the IRS. File Image / AP

US President Donald Trump sacked the acting commissioner of the US Internal Revenue Service after Treasury Secretary Scott Bessent reportedly complained that the agency head was appointed without his knowledge. According to a report by The New York Times, the Bessent complained that Gary Shapley was chosen for the role without him knowing and only under the instruction of Doge head Elon Musk.

A source close to the matter told NYT that Bessent believed that the Doge head “had done an end-run around him” to get Gary Shapley installed as the interim head of the IRS. However, the agency reports to Bessent and the Treassurey secretary should have a say on the person who leads it.

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The NYT report cited five anonymous sources with the knowledge of the situation, all of them said that Bessent was displeased with the appointment. The so-called “department of government efficiency” reportedly pushed for the appointment of Shapley using channels within the White House.

Bessent’s deputy will take charge for a while

While Shapley is dismissed from the role, Michael Faulkender, the current deputy secretary of the US treasury, is expected to become the next acting head of the tax-collecting agency, NYT reported. Meanwhile, Missouri congressman Billy Long, who was appointed by Trump to hold actually hold the position is currently waiting for his Senate confirmation.

Earlier this week, it was reported that Long had significant personal debt, which was abruptly paid off using campaign contributions acquired after Trump announced his intention to nominate him to lead the IRS.

The seat of the IRS head has been a matter of contention within the Trump administration. Shapley was chosen by Trump on Tuesday after previous interim head, Melanie Krause, resigned from the office. rause departed from her role at the IRS after the agency agreed to a deal to share tax information of undocumented immigrants living in the US with federal agents.

When asked about the recent development, Karoline Leavitt told the NYT that disagreements are normal. “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," she said in a statement to the American news outlet.

While the internal power struggle is going on, the IRS has reportedly been planning to revoke Harvard’s tax-exempt status following pressure from the Trump administration. However, it is against the law for the president to direct the IRS to conduct an investigation or audit.

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