Hunter Biden Whistleblower Replaced As Acting IRS Commissioner Just Days Into Job

The acting commissioner of the Internal Revenue Service (IRS) was replaced Friday, only three days after assuming the role, as his appointment triggered a power struggle between Treasury Secretary Scott Bessent and Elon Musk of the Department of Government Efficiency, the New York Times reported.

Gary Shapley was replaced after Bessent complained to President Donald Trump that Musk circumvented Bessent’s office to secure the position for Shapley, the NYT reported. The outlet cited people who said they were familiar with the situation. Shapley was a longstanding IRS agent who accused the Biden administration’s Department of Justice of dragging out its probe of Hunter Biden’s tax issues.

The IRS answers to the Treasury Department.

Bessent said his deputy, Michael Faulkender, would replace Shapley.

“Trust must be brought back to the IRS, and I am fully confident that @TreasuryDepSec Michael Faulkender is the right man for the moment,” Bessent wrote.

White House Press Secretary Karoline Leavitt did not elaborate on the reported dispute between Bessent and Musk but said “it’s no secret President [Donald] Trump has put together a team of people who are incredibly passionate about the issues impacting our country,” according to the Times.

“Disagreements are a normal part of any healthy policy process. And ultimately everyone knows they serve at the pleasure of President Trump,” Leavitt reportedly added.

The reported struggle is one of several differences between Musk and some of Trump’s cabinet officials. Musk and Secretary of State Marco Rubio clashed in early March over the former’s push for swift and major cuts at the State Department, according to Politico.

Shapley’s short-lived stint is one of several upheavals the IRS has endured. He had replaced previous Acting Commissioner Melanie Krause, who resigned earlier this month after the Treasury Department agreed to provide Immigration and Customs Enforcement with data of taxpaying illegal immigrants, according to the outlet.

Krause herself was in the position for only two months after another interim commissioner, Douglas O’Donnell, stepped down. Many of the IRS staff have also reportedly either quit or been forced out.

Praising Shapley’s “passion and thoughtfulness” in helping to reform the IRS, Bessent added that Shapley “remains among my most important senior advisors” at the Treasury and would continue to contribute to IRS reforms.

Shapley and another IRS special agent, Joseph Ziegler, had been investigating Hunter Biden’s tax affairs for years before blowing the whistle in 2022 on the younger Biden’s tax evasion on his $8.3 million income, according to a separate Treasury statement. (RELATED: Hunter Biden Pleads Guilty To Tax Charges)

For their whistleblowing, both agents faced “political persecution by the IRS, including several attempts to discredit their reputations and ruin their careers,” the statement said, adding that the Treasury had restored their careers by hiring them as senior advisors.

Both agents told lawmakers that investigating former President Joe Biden was discouraged despite potentially fishy financial transactions involving him, his son Hunter and their family business entities. They also said they had to argue with federal officials and defend themselves against aspersions.

“After Gary [Shapley] and Joseph Ziegler complete their ongoing year-long investigation, I will ensure they are both in senior government roles that will enable the results of their investigation to translate into meaningful policy changes,” Bessent said.