President Donald Trump has fired acting IRS Commissioner Gary Shapley after learning that Elon Musk placed him there—without the Treasury Secretary’s knowledge or approval.
According to a source familiar with the situation, Treasury Secretary Scott Bessent went directly to Trump, saying Shapley had been quietly placed into the role at Musk’s direction—completely bypassing the Treasury Department. Bessent told Trump he had not approved or even been informed of the move.
As reported by The New York Times, Trump quickly gave the green light to reverse the decision. Shapley is out, and Deputy Treasury Secretary Michael Faulkender is expected to step in as the new acting commissioner.
This behind-the-scenes shakeup appears to be the latest fallout in growing tensions between Bessent and Musk.
Last week, Musk publicly criticized Bessent on X (formerly Twitter), reposting a thread by far-right activist Laura Loomer. The post accused Bessent of being linked to anti-Trump figures. Musk added just one word to the post: “Troubling.”
Loomer also promised to “personally tell President Trump and personally show him these receipts.”
Shapley had only recently taken over the job from Melanie Krause, who resigned earlier this month after a controversial data-sharing deal with Homeland Security. That agreement allowed immigration officials to cross-check tax data with personal information.
Meanwhile, Trump’s permanent pick to run the IRS, Billy Long, is still waiting for a Senate confirmation hearing.
But this latest move makes it clear: even a billionaire like Musk can’t quietly move pieces on the chessboard without someone noticing—and paying the price.
