The Internal Revenue Service has emerged as a battleground for administrative control as President Donald Trump installed its fifth acting commissioner in 2025, the latest move in an escalating fight between Treasury Secretary Scott Bessent and billionaire donor Elon Musk. This leadership turbulence—the third in a week—illustrates mounting tensions over the agency’s direction and purpose and how it can be coordinated into Trump’s broader political agenda.
Rapid-fire changes in IRS leadership
The IRS has seen five acting commissioners since January of 2025, starting with the resignation of Biden-appointed commissioner Danny Werfel. Trump’s first appointee, Doug O’Donnell, served one month before he was replaced by Melanie Krause, who resigned following the IRS agreeing to disclose taxpayer information to immigration authorities. Conservative whistleblower Gary Shapley, charged with making the allegations of DOJ interference in the Hunter Biden tax case, was subsequently scheduled for April 16 but only removed three days later following protest from Bessent. Faulkender, who was previously Deputy Treasury Secretary, now holds an interim position until Trump’s appointee, former Rep. Billy Long (R-Mo.), is confirmed by the Senate.
Musk vs. Bessent: A battle For influence
The chaos is the result of Musk’s backstage arm-twisting to place Shapley on the commissioner’s job with Bessent opposed, the Treasury Secretary in charge of running the IRS. Musk used his Department of Government Efficiency (DOGE) to strong-arm Shapley’s appointment over, short-circuiting all normal lines of authority. Bessent, allegedly indignant at this end-run around her, lobbied Trump to withdraw the appointment, insisting that the IRS needs to be under Treasury control. The feud indicates Musk’s growing involvement in Trump’s government, where he has been pushing for massive federal worker cuts and organizing appointments within agencies.
Implications for IRS operations and trust
The crisis has disabled the agency’s work. More than 34,000 workers—one-third of its staff—have quit or been terminated since January, compounding tax processing and enforcement backlogs. Critics say that political interference, such as Trump’s threats to withdraw tax-exempt status from universities and charities, threatens to politicize the agency. Faulkender’s background on overseeing the Paycheck Protection Program and Senate-confirmed status as Deputy Treasury Secretary provide technical knowledge, but his track record will be tested immediately:
- Staff shortages slowing refunds and audits
- Eroding public confidence due to apparent partisan targeting
- Disruption in operations due to frequent leadership shifts
Faulkender’s agenda and longer-term concerns
In Senate testimony, Faulkender prioritized “fair and impartial” tax enforcement, promising to steer clear of “overly aggressive audits” of small businesses. But his commitment to Trump’s agenda is in doubt. The president openly bullied the IRS to audit political opponents, like Harvard University, while Republican allies like Rep. Long—whose nomination hangs in the balance because of connections to tax credit scams—indicate a focus on conservative priorities.
Musk’s vision for a streamlined IRS, operated on the back of DOGE, clashes with Bessent’s adamant insistence on business-as-usual oversight. The Treasury Secretary’s assurance that Faulkender will “restore trust” suggests an attempt to usher in stability within the agency, but while Musk remains in Trump’s ear, further pandemonium is a foregone conclusion.
A crisis of governance
The IRS saga illustrates the disorder permeating Trump’s second-term administration, where fanatics and outsiders fight to dominate key institutions. Although Faulkender’s background might temporarily reestablish stability, the larger conflict between Bessent and Musk indicates a broken administration concerned with ideological victories over competent government. While the IRS struggles with undermanned workers and politicized directives, its capacity to objectively implement the tax code—and public confidence within it—is at stake.
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