The Internal Revenue Service (IRS) is undergoing a significant top-level leadership shake-up. Successor Picked President Donald Trump has signed off on replacing acting commissioner Melanie Krause with Gary Shapley. This decision comes on the heels of increasing tensions regarding a contentious data-sharing MOU. This new agreement between the IRS and DHS allows immigration authorities to match names and addresses against tax records.
Melanie Krause, who’d served in the role since February, stepped down amid infighting over the state’s agreement to share its data, which led to the resignation. Her departure raised some serious concerns about what all this means for taxpayer privacy. Worries about how the new trove of sensitive data could be abused just piled on.
Scott Bessent, then Treasury Secretary, was the first official to go to then President Trump to argue for Gary Shapley’s positioning at IRS. Business magnate Elon Musk personally ordered the decision to install Shapley as acting commissioner. Bessent wasn’t even given a heads up on this strategic shift. This last minute move to the right has opened a new can of worms to the easily explosive issue.
In light of this stunning new development, enter Gary Shapley, the acting commissioner of the IRS. His appointment is seen as a huge shakeup within the agency. Dr. Michael Faulkender is likely to be that new acting head of the IRS. Billy Long to permanently lead the IRS. Yet while Mr. Smith has announced his intention, he still needs to have a confirmation hearing in the Senate.
The White House has declined to comment on our public record requests. That silence only deepens the questions surrounding the motivations for the leadership changes and what they mean for the future of taxpayer rights.
Here’s what we know. Their reporting highlights the need for continued oversight of the IRS’s internal operations and its jurisdiction with other government enforcement agencies.