Gary Shapley, who was appointed interim IRS commissioner only two days ago, has been fired, according to CBS News.
According to two sources familiar with the matter, Shapley’s roughly 48 hours as CEO of the agency where he has spent the majority of his career were marred by an internal squabble involving billionaire Elon Musk, who supported Shapley’s appointment.
Shapley’s appointment to the agency’s top position sparked a round of back-channel discussions. According to CBS News sources, the focus was on Musk’s role in bypassing Treasury Secretary Scott Bessent’s authority to install Shapley, who is best known for speaking out about alleged political influence in the Hunter Biden tax probe.
According to multiple sources, Bessent complained to President Trump that Shapley had been installed at Musk’s request and sought his approval to reverse the decision.
Deputy Treasury Secretary Michael Faulkender, who is now the agency’s acting head, expressed concerns about Shapley’s appointment, and Bessent agreed, according to multiple sources.
Shapley’s ouster was first reported by the New York Times on Friday.
In a social media post Friday afternoon, Bessent expressed support for Faulkender’s appointment, saying, “Trust must be restored to the IRS” and describing Faulkender as “the right man for the moment.”
Shapley is expected to continue advising Treasury Secretary Scott Bessent, according to sources. Bessent also confirmed that Shapley will continue to work at the Treasury Department.
“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,” according to Bessent.
Shapley was appointed IRS commissioner while President Trump’s nominee, Billy Long, was awaiting Senate confirmation. Long, a former Missouri congressman, has faced questions about his qualifications.
Shapley, a former agency supervisor, rose to prominence after speaking out about Hunter Biden’s tax case. Shapley, a supervisory special agent in his 14th year with the IRS, came forward in a 2023 interview with CBS News chief investigative correspondent Jim Axelrod.
He claimed there were internal concerns about improper pressure to ease up on former President Joe Biden’s son.
Shapley was one of two IRS whistleblowers who testified before Congress about alleged wrongdoing in the Hunter Biden investigation. The IRS agents claimed that the Department of Justice “slow-walked” the investigation and told them not to look into leads involving Joe Biden.
They were removed from the case and given temporary leave with pay. Hunter Biden later pleaded guilty to tax offenses and was pardoned by his father.
Shapley and another agent who claimed they faced retaliation for blowing the whistle to Congress and speaking out to CBS News about their investigation have already held high-ranking positions in the Trump administration.
Shapley was initially assigned to Bessent’s office as a senior adviser for IRS reform before becoming the agency’s deputy director of criminal investigations.