Gary Shapley, the acting commissioner of the Internal Revenue Service, is being replaced after Treasury Secretary Scott Bessent approached Trump to say that Shapley was placed into the agency without his knowledge and at Elon Musk’s direction, according to a source familiar with the discussions.

Bessent received Trump’s approval to roll back the decision, the source said, and Deputy Treasury Secretary Michael Faulkender is expected to become the next acting IRS head.

The decision was first reported by the New York Times. 

The White House did not immediately respond to a request for comment.

Shapley had replaced Melanie Krause, the acting commissioner since February, who earlier this month said she was resigning over a data-sharing agreement with the Department of Homeland Security that will allow immigration authorities to submit names and addresses for cross-verification against tax records.

Trump’s pick to lead the IRS permanently, Billy Long, has not yet had a confirmation hearing in the Senate.