Elon Musk IRS controversy: Trump ousted IRS chief after arbitration between Elon Musk and Trump officials

Treasury Secretary Scott Bessent complained to President Donald Trump that he was installed by billionaire SpaceX CEO Elon Musk. According to a report from the New York Times, Becente was not satisfied with the role he had not consulted with acting commissioner Gary Shapley.

President Donald Trump has decided to replace the fourth IRS head of this year in amid ongoing disputes between his tech billionaire allies and his officials. Bessent also expelled an outstanding member of the IRS Governor Musk’s team, which was assigned to the IRS, after the agency initiated a reduction in key staffing.

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Gary Shapley is ousted as IRS Chief

Gary Shapley, who was appointed acting commissioner of IRS with the help of Elon Musk earlier this week, will no longer hold the position, which will be seen as a victory for Scott Bessent. CNN reported that the deputy secretary of the Treasury will hold the position.

Shapley’s demolition is because the IRS is undergoing many changes, and experts warn that it could undermine its ability to do its job effectively. The IRS is juggling between resigning and laying off employees.

The IRS is expected to lose one-third of its workforce this year. The agency hired about 100,000 employees before the former Trump presidency took office. Since January, about 12,000 employees have resigned or fired. According to the latest report from the Times, another 22,000 IRS employees accepted the Trump administration’s recent resignation proposal.Also Read: On the new website, White House announces lab leaks as “real origin” of covid in tariff war with China

Bessent vs Musk hatred

Shapley is the third IRS acting in three months since Trump returned to the White House, and he played the role Tuesday. After the resignation of acting commissioner Melanie Krause, he was appointed as a controversial deal for the IRS to share sensitive taxpayer information with immigration authorities.

Reports suggest Scott Bessent is upset because he believes Tesla and SpaceX CEOs have appointed Gary Shapley around him. The agency is responsible for taxation and enforcement of federal tax laws and reports to the Treasury Department, which is headed by the Treasury Department.

The Times report, which cited five people, learned about reorganization and discussion, said he had no decision to install Shapley and subsequently sought Trump’s approval to remove him. On Friday, after the Times story was published, Best confirmed on X (formerly Twitter) that Sharpley was resigning.

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“The trust must be brought back to the IRS, and I totally believe @TreasuryDepsec Michael Faulkender is the right person right now,” Bessent said.

“Gary Shapley’s passion and thoughtfulness in the way she’s lasting and lasting reforms at the IRS is crucial to our work, and he remains one of my most important senior advisers on @ustreasury as we work together to rethink and reform the IRS.”

He wrote: “After Gary and Joseph Ziegler completed a one-year survey, I will make sure they both play a high-level government role, which will enable their findings to translate into meaningful policy changes.”