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The Internal Revenue Service had another leadership shake-up on Friday, marking the third turnover the bureau has seen since tax week began — and the fifth since Donald Trump took office in January.
Treasury Secretary Scott Bessent announced in a Friday statement that he had appointed his deputy, Michael Faulkender, to become acting commissioner of the IRS. Faulkender will take over from Gary Shapley, a former IRS staffer who held the position for just days following Melanie Krause’s departure on Tuesday.
“Trust must be brought back to the IRS, and I am fully confident that Deputy Secretary Michael Faulkender is the right man for the moment,” Bessent said in a statement on Friday. “Gary Shapley’s passion and thoughtfulness for approaching ways by which to create durable and lasting reforms at the IRS is essential to our work, and he remains among my most important senior advisors at the US Treasury as we work together to rethink and reform the IRS.”
Shapley, last month, was tapped as a senior advisor to Bessent. He became a hero among conservatives following his testimony before Congress in July 2023, in which he and fellow IRS whistleblower Joseph Ziegler attested that the Justice Department had delayed a criminal probe and tax investigation into Hunter Biden while President Joe Biden was in office.
In his statement, Bessent said Shapley and Ziegler would conduct a yearlong investigation into IRS reforms, after which Bessent said he “will ensure they are both in senior government roles that will enable the results of their investigation to translate into meaningful policy changes.”
Shapley took over the role of acting IRS commissioner after Krause resigned on Tuesday. Her resignation came on the heels of the IRS coming to an agreement with the Department of Homeland Security to share sensitive tax information related to undocumented immigrants to help the Trump administration locate and deport them, court documents show.
The agreement was revealed in early April in a partially redacted document filed in a case challenging the legality of the IRS sharing individuals’ tax information with external agencies.
Krause took over the agency in an acting capacity after Doug O’Donnell resigned in February. O’Donnell had served in the role following Biden-appointed IRS commissioner Danny Werfel’s resignation on Inauguration Day.
Trump has nominated Former Republican Rep. Billy Long for the role, but his confirmation is awaiting Senate approval.
The uncertainty regarding the bureau’s leadership comes as the IRS is facing significant staff cuts. Business Insider previously reported that the staffing cuts are intended “to increase the efficiency and effectiveness of the IRS,” and include a 75% reduction of the IRS’s Office of Civil Rights and Compliance.
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