Musk-Bessent Friction Leads to More Drama at IRS

The IRS is getting its fifth leader since January, and the latest turnover is the result of friction between Elon Musk and Treasury Secretary Scott Bessent, reports the New York Times. Coverage:

• Deputy Treasury Secretary Michael Faulkender is taking over, reports the Wall Street Journal. He is Bessent's pick.
• Faulkender replaces Gary Shapley, who was installed by Trump in the post only on Tuesday. Shapley was Musk's pick, and the Times reports Bessent was angry because he was not even consulted. Shapley is a favorite of conservatives because the longtime IRS official accused the Justice Department of stalling its investigation of Hunter Biden's taxes.

• Bessent went to Trump and got permission to undo the appointment of Shapley, per NBC News. Animosity is reportedly growing between Musk and Bessent, with Musk endorsing a post by far-right activist Laura Loomer raising questions about the Treasury chief's loyalty to Trump. "Troubling," Musk wrote when retweeting Loomer's post on Thursday night.
• Shapley had replaced Melanie Krause, who resigned over the agency's new data-sharing agreement with the Department of Homeland Security. Krause had replaced Doug O'Donnell, who served in the post briefly after replacing former IRS Commissioner Danny Werfel, the Joe Biden appointee who resigned on Inauguration Day.
• Faulkender will be eventually be replaced by a permanent appointee. Trump has nominated former GOP congressman Billy Long, whose Senate confirmation process is ongoing.
• The White House shrugged off the controversy. "It's no secret President Trump has put together a team of people who are incredibly passionate about the issues impacting our country," said White House press secretary Karoline Leavitt. "Disagreements are a normal part of any healthy policy process, and ultimately everyone knows they serve at the pleasure of President Trump."

(More IRS stories.)