IRS whistleblower Gary Shapley, whose testimony to Congress significantly impacted the investigation into Hunter Biden’s alleged criminal activities, is now facing a tough choice from his agency: accept a transfer and demotion, or leave. The ultimatum, delivered in a letter to Shapley on October 15, outlined three options for the seasoned supervisory special agent: transfer to a new role in Washington as a senior analyst, accept a pay cut and demotion to criminal investigator, or retire from the IRS altogether. According to Just the News, this demand has sparked concerns of retaliation, especially given Shapley’s previous claims of irregularities and alleged political interference in the Hunter Biden case.
Shapley’s testimony to Congress has been instrumental in reshaping the narrative around the Biden family’s business dealings. Together with fellow whistleblower Joseph Ziegler, Shapley provided evidence of what he described as preferential treatment for Hunter Biden, sparking renewed scrutiny into the U.S. Department of Justice’s handling of the case. Shapley’s lawyer argues that these new demands from the IRS signal a continued pattern of retaliation that started over a year ago, when the whistleblower was allegedly passed over for four promotions following his disclosure of details about the Biden investigation.
Tristan Leavitt, president of the whistleblower advocacy group Empower Oversight, expressed deep concern, urging the Office of Special Counsel (OSC) to intervene. In a public statement on X (formerly Twitter), Leavitt called for the OSC to pause the ultimatum, investigate Shapley’s claims, and brief Congress on their findings. “The OSC should issue an immediate stay while they conduct their investigation into the 4 promotions SSA Shapley has been passed over for since he blew the whistle, and provide a briefing to Congress on what they have done to date,” Leavitt posted, citing the urgent need for an investigation.
The IRS, however, has maintained that Shapley’s reassignment is part of a routine initiative aimed at fostering “diversity of thought, breadth of experience, and technical and interpersonal expertise” among its leadership. In the letter to Shapley, the agency justified its decision by describing it as part of a larger mobility program designed to promote future leaders within the organization. Still, critics argue that this explanation rings hollow, viewing the agency’s actions as thinly veiled punishment for Shapley’s role in a highly political and controversial case.
House Oversight Committee Chairman James Comer, who has overseen much of the investigation into the Biden family’s business dealings, responded strongly to the IRS’s recent actions, saying the situation warrants scrutiny. “Two brave IRS whistleblowers, Gary Shapley and Joseph Ziegler, placed their careers on the line to blow the whistle, and now the IRS is out for revenge,” Comer said. He also reaffirmed his commitment to protecting whistleblowers who expose wrongdoing, adding that any attempt to punish Shapley or Ziegler “will not be tolerated.” Comer’s committee is expected to call on the IRS and the OSC to explain their handling of the whistleblowers’ case.
Chairman Jason Smith of the House Ways and Means Committee, who oversees the IRS, echoed Comer’s concerns. “The Commissioner of the IRS stood before the Ways and Means Committee and testified that there would be no retaliation against any whistleblowers,” Smith noted, adding that recent events cast doubt on the agency’s commitment to this promise. Smith’s remarks highlight a growing bipartisan concern that whistleblowers who expose wrongdoing within high-stakes investigations may face reprisals from their own agencies.
The testimony provided by Shapley and Ziegler brought new information to light about the DOJ’s handling of Hunter Biden’s tax and business dealings. According to their account, the pair initially began investigating Hunter Biden in 2019 under a case code-named “Sportsman.” Their findings indicated Hunter Biden allegedly avoided paying millions in taxes on income derived from his foreign business dealings, which involved significant funds from Ukraine, China, and other countries during Joe Biden’s tenure as vice president.
Their testimonies also revealed alleged interference in their efforts to thoroughly investigate the first son’s financial dealings and interview key Biden family members. At one point, the whistleblowers claimed their efforts were obstructed by top officials within the IRS and DOJ, making it difficult to pursue substantial charges against Hunter Biden. The controversy intensified after a plea deal, initially arranged for Hunter Biden, fell apart following public scrutiny, ultimately leading to his conviction on felony gun charges and guilty plea on tax crimes.
Shapley and Ziegler contend that they stepped forward not for political reasons but to ensure that Hunter Biden was treated with the same accountability as other taxpayers. “I’m pro-IRS. I’m pro-mission. I’m pro-agency,” Shapley said in a June interview with Just the News. “I’ve been a senior leader at this agency, I have a lot of great friends in senior leadership. And I believe in what we’re doing. But I believe in what we’re doing when we’re treating people fairly. And, you know, it just didn’t happen in this particular case.” His remarks underscore his frustration with what he views as a departure from the agency’s mission.
The evidence and testimonies provided by Shapley and Ziegler ultimately led to heightened media coverage of the Biden family’s foreign business activities, forcing mainstream outlets like CBS News and The New York Times to address a story they had once dismissed as politically motivated misinformation.
The IRS’s demands on Shapley raise important questions about the treatment of whistleblowers within government agencies. Shapley’s situation has prompted many to question whether whistleblowers who expose high-profile cases can truly remain protected. Shapley and Ziegler’s accounts not only changed the trajectory of the Biden family investigation but also highlighted potential gaps in how government institutions respond to claims of political interference and favoritism. As Congress continues its probe into the Biden family’s business activities and the agencies involved, the treatment of whistleblowers like Shapley and Ziegler may also undergo further scrutiny.
You can read the full letter here.
