In a significant development for the Internal Revenue Service, Gary Shapley, an IRS whistleblower who made headlines for his public testimony on the Hunter Biden tax investigation, is expected to be promoted to acting IRS commissioner, according to two sources familiar with the matter.
The move comes amid ongoing scrutiny of how the IRS and the Department of Justice handled the investigation into President Joe Biden’s son, and follows a series of high-level shakeups within the agency.
Who Is Gary Shapley?
Gary Shapley is a longtime IRS employee who has served in the Criminal Investigations division for over 15 years. Earlier this year, he was promoted to Deputy Chief of IRS Criminal Investigations, and now he is set to temporarily replace Melanie Krause as acting commissioner.
Shapley made national headlines when he testified before Congress, claiming he faced retaliation for raising concerns about how the Justice Department managed the Hunter Biden tax investigation.
Alongside fellow whistleblower Joseph Ziegler, Shapley accused the DOJ and former Delaware U.S. Attorney David Weiss of delaying enforcement actions ahead of the 2020 presidential election.
Why the Leadership Change?
Shapley will step into the role vacated by Melanie Krause, who is resigning after controversy surrounding a data-sharing deal between the IRS and Immigration and Customs Enforcement (ICE).
The agreement involved sharing tax data on undocumented immigrants with ICE for potential deportation efforts—an issue that drew both political and public backlash.
Political Background and Implications
The IRS is currently awaiting the confirmation hearing of former Missouri Congressman Billy Long, a Trump nominee expected to take on the role of permanent commissioner. Until then, Shapley will serve in the top post, giving a highly visible platform to a man once cast aside for whistleblowing.
Ziegler, Shapley’s former investigative partner, has also been reassigned to a senior advisory role at the Treasury Department, focusing on IRS reform.
Hunter Biden Case: A Recap
The controversy surrounding Shapley began with the now-closed investigation into Hunter Biden, who was accused of failing to pay more than $1.4 million in taxes between 2016 and 2019. Shapley and Ziegler alleged that the DOJ slow-walked the investigation, delaying warrants, interviews, and enforcement decisions.
The case ended when President Biden issued a pardon for his son, sparing him from federal felony gun and tax convictions. This action drew criticism from Republicans, as it reversed Biden’s earlier promises not to use presidential powers to protect his family.
Hunter Biden had been set to stand trial in California in September 2024, but a last-minute plea deal saw him agree to both misdemeanor and felony charges, avoiding trial altogether.
Treasury Backs Shapley
Despite past internal tensions, the Treasury Department issued a statement supporting Shapley’s promotion:
“Gary is a long-tenured civil servant who has dedicated the last 15 years of his professional life to the IRS. Gary has proven his honesty and devotion to enforcing the law without fear or favor, even at great cost to his own career. He’ll be a great asset to the IRS as we rethink and reform this crucial organization.”