President Donald Trump has replaced acting Internal Revenue Service (IRS) Commissioner Gary Shapley with Deputy Treasury Secretary , according to sources familiar with the matter. The change comes amid an internal dispute within the Treasury Department involving Secretary Scott Bessent, who reportedly objected to Shapley's appointment.

Bessent raised concerns that Shapley had been appointed without his prior knowledge and suggested the move may have been influenced by a request from billionaire Elon Musk. The situation led to Shapley's swift removal just shortly after his appointment to the post.

Michael Faulkender, currently serving as Deputy Secretary of the Treasury, has been named interim IRS chief and is expected to remain in that role until former congressman Billy Long, Trump’s nominee for the permanent position, is confirmed by the Senate.

The White House responded to reports of internal friction, characterizing the shift as part of normal policy dynamics. Press Secretary Karoline Leavitt stated, “It’s no secret President Trump has put together a team of people who are incredibly passionate about the issues impacting our country. Disagreements are a normal part of any healthy policy process, and ultimately everyone knows they serve at the pleasure of President Trump.”

While no official reason for Shapley’s removal has been publicly announced, the controversy underscores ongoing tensions within the Treasury Department as the Trump administration continues to reorganize key federal positions. The appointment of Billy Long will require Senate confirmation before he can formally assume the leadership role at the IRS.

This leadership change comes at a critical time for the IRS, which faces mounting demands in tax policy enforcement and modernization efforts. Trump’s reshuffling of top personnel signals a continued focus on aligning federal leadership with his administration’s fiscal vision and strategic priorities.