IRS Names Third Acting Commissioner in One Week Amid Internal Power Struggle

The Internal Revenue Service (IRS) has a new acting commissioner: Michael Faulkender. He’s the third person to take over the role in just one week, according to The New York Times. This change happened after some serious disagreements behind the scenes, involving Treasury Secretary Scott Bessent and businessman Elon Musk. The IRS, which is part of the Treasury Department, has been going through a lot of leadership changes recently, causing confusion about who’s really in charge.

Elon Musk’s Name Comes Up in the Controversy

Faulkender replaced Gary Shapley, who was appointed by former President Donald Trump. But that decision led to controversy. Treasury Secretary Bessent reportedly told the president that Elon Musk influenced Shapley’s choice, even though Bessent was supposed to oversee such appointments. Bessent felt that Musk had too much say in something that should have been his decision. The situation became more tense when Musk shared a post from researcher Laura Loomer accusing Bessent of wrongdoing, which made the disagreement public.

A Permanent IRS Commissioner Is Still Pending

Right now, the IRS is still waiting for a permanent leader. Former Representative Billy Long has been nominated, but he still needs to be confirmed by the Senate before officially stepping into the role. Until that happens, Faulkender will continue leading the agency. This waiting period adds to the instability at a time when the IRS is dealing with internal challenges and preparing for changes to its workforce.

Shapley and Ziegler Stay in the Picture

Even though Shapley is no longer the acting head of the IRS, he hasn’t been pushed out completely. In fact, Bessent publicly praised him for his hard work and confirmed that both Shapley and Joseph Ziegler—another IRS figure who criticized how the Hunter Biden tax investigation was handled, will still have important jobs either at the Treasury Department or within the IRS. It seems like the leadership shake-up won’t stop these two from staying involved.

IRS Plans Major Layoffs Amid the Chaos

All of this leadership drama is happening at the same time as the IRS is preparing for major job cuts. As part of a federal plan to reduce the size of government, the IRS is planning to lay off many workers from its Office of Civil Rights and Compliance. The goal is to cut this department’s staff by 80%. So far, about 5% of the staff have already left this year through resignations or people choosing not to return. More layoffs are expected soon, making this a very uncertain time for the agency and its employees.