Democrats Dig Deeper on IRS Pick’s Ties to Tribal Credit Sponsor

Senate Finance Committee Democrats are demanding to know whether IRS commissioner nominee Billy Long or other incoming Trump administration officials have a deal with a company to legitimize tax credits that the Treasury Department and IRS have said don’t exist.

Ron Wyden (D-Ore.), Senate Finance’s ranking member, and committee member Sen. Catherine Cortez Masto (D-Nev.) raised new questions about White River Energy Corp., which has been selling so-called sovereign tribal tax credits to wealthy investors through a network of promoters, in a Tuesday letter to the firm.

The lawmakers, who last month called for a criminal investigation into firms that promoted the credits, are asking White River Chief Financial Officer Jay Puchir to explain his statements—on a recording of a December investor call obtained by investigators—that his contacts in the new administration will make sure the tax credits get the green light. Committee investigators say the call was hosted in response to Bloomberg Tax’s reporting revealing the existence of the credits.

Long has earned money and received donations to his dormant campaign fund from people who listed their employer as from White River and other companies associated with promoting the credit, according to political disclosures. The former Republican House member from Missouri is also expected to be questioned about the call during a due diligence meeting scheduled Tuesday with Senate Finance.

“We believe the investor call contains evidence of a corrupt lobbying scheme between White River and incoming Trump Administration officials to authorize millions in so-called ‘tribal tax credits’ the IRS claims do not exist,” investigators said in the letter to White River.

Senate Finance Democrats are asking White River to provide data on the size of its tribal tax credit business, a contact in the Treasury and IRS who could verify the credits, details on Long’s involvement, and more.

Puchir told investors on the call that the Treasury Department under the Biden administration had “not been very cooperative, but we have numerous contacts in the new administration,” according to the call transcript cited in the letter.

Puchir and the Office of Personnel Management didn’t immediately respond to requests for comment. Long, a staunch supporter of President Donald Trump, has been working as an OPM adviser while awaiting his confirmation for the IRS job.

White River argues the program is legitimate and previously said Democrats are just trying to sabotage Long’s nomination. The company accused Democrats last month of only becoming interested after “it was discovered that IRS Commissioner-Elect Billy Long had made an insignificant amount of referrals of these credits to third parties.”

Long’s confirmation hearing with Finance Committee is expected to take place by the end of the month.

Long’s ethics disclosures, released to Bloomberg Tax by the Office of Government Ethics, state that he earned at least $5,000 in a year from White River for a “Referral to Capitol Edge Strategies.” He stated his duties at Capitol Edge were as a “referral agent.” The Capitol Edge website includes resources explaining the tribal tax credit.

Long, who hasn’t been on any ballot for several years, saw nearly $137,000 flow into his Senate campaign coffers in the first quarter of this year, which he used to repay $130,000 in personal loans he made to his campaign. The donor list included Puchir, others who listed their employer as White River, and additional firms that promoted the tribal credits.