CNN reported earlier this month that former IRS whistleblower Gary Shapley would serve as the agency's new acting commissioner.

Yet in a sign that tensions are growing within the White House, Shapley was instead replaced by Deputy Treasury Secretary Michael Faulkender. 

Shapley testified about interference in Biden investigation

That's according to an article published by The New York Times on Thursday which cited five people who are said to have "knowledge of the change."

Shapley, who was favored by Elon Musk, first came to national prominence in July of 2023 when he testified before the House Oversight Committee alongside fellow whistleblower Joseph Ziegler.

Shapley and Ziegler alleged that efforts to investigate criminal activity by Hunter Biden and other members of the Biden family were thwarted by senior figures within the Department of Justice (DOJ).

"It appeared to me, based on what I experienced, that the US attorney in Delaware in our investigation was constantly hamstrung, limited, and marginalized by DOJ officials as well as other US attorneys," CNN quoted Ziegler as saying.

Clash between Musk and Treasury secretary

However, the Times reported Treasury Secretary Scott Bessent took issue with Musk's effort to have Shapley appointed as acting IRS commissioner.

Specifically, Bessent "complained to Mr. Trump this week that Mr. Musk had done an end run around him to get Mr. Shapley installed."

For his part, the secretary released a statement via social media in which he hailed Faulkender's appointment while also praising Shapley, who will serve as an adviser.

"Trust must be brought back to the IRS, and I am fully confident that [Treasury Department Secretary] Michael Faulkender is the right man for the moment," Bessent declared.

Bessent says Shapley is among his "most important senior advisors"

"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 at the [U.S. Treasury] as we work together to rethink and reform the IRS,"

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

Gary Shapley's passion and thoughtfulness for approaching ways by which to create durable and lasting reforms at the IRS is essential to our…

— Treasury Secretary Scott Bessent (@SecScottBessent) April 18, 2025

“After Gary 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 added.

Meanwhile, Breitbart noted how the need for a new acting commissioner arose after former acting IRS Commissioner Melanie Krause resigned over an agreement to share the tax information of illegal aliens with the Department of Homeland Security.