Trump is replacing the acting IRS commissioner, part of a dispute between Treasury and Elon Musk

Gary Shapley, the acting commissioner of the Internal Revenue Service, is being replaced after Treasury Secretary Scott Bessent approached President Donald Trump to say that Shapley was placed into the agency without his knowledge and at Elon Musk’s direction, according to a source familiar with the discussions.

Bessent received Trump’s approval to roll back the decision, the source said, and Deputy Treasury Secretary Michael Faulkender is expected to become the next acting IRS head.

The move and details of the decision were first reported by The New York Times. 

The White House did not immediately respond to a request for comment.

Shapley had replaced Melanie Krause, the acting commissioner since February, who earlier this month said she was resigning over a data-sharing agreement with the Department of Homeland Security. The agreement permits immigration authorities to submit personal information, like names and addresses, to be verified against tax filings.

There have been public signs of conflict between Bessent and Musk in recent days. In a Thursday night social media post, Musk reposted commentary by far-right activist Laura Loomer alleging a “vetting crisis” at the White House and attacking Bessent for his involvement with someone she characterized as anti-Trump. Loomer vowed to “personally tell President Trump and personally show him these receipts.”

“Troubling,” Musk wrote on X, the social media platform he owns, sharing Loomer’s thread. 

Trump has said that Musk would not overstep in his role as head of the cost-cutting Department of Government Efficiency, and during a Cabinet meeting last month said Musk has “never asked him for a thing.”

Trump’s pick to lead the IRS permanently, Billy Long, has not yet had a confirmation hearing in the Senate.