IRS Chief Nominee Says He’ll Resist Trump Political Pressure

IRS commissioner nominee Billy Long found a friendly reception during his Tuesday confirmation hearing from Senate Finance Committee Republicans, who stuck to questions on how to improve taxpayer services, modernize agency technology, and protecting taxpayer information.

Since his nomination, Long has faced queries from Democrats on the panel over his qualifications for the role and his involvement with tribal tax credits that the Treasury Department and IRS say don’t exist, along with a separate pandemic-era credit program that’s been riddled with fraud. As a long-time ally of President Donald Trump, they’ve also questioned Long’s ability to resist political pressure.

Long previously disclosed earning $247,397 for referral and consulting fees related to the Employee Retention Tax Credit. His ethics disclosures also show earnings from White River Energy Corp., a sponsor of what they’re calling sovereign tribal tax credits, as well as another company that has promotional materials for the credits on its website.

Long downplayed his involvement in the credits, telling the committee, “My only involvement in this matter was to connect interested friends of mine.”

Republicans on the panel appeared unbothered by Long’s involvement with the credits. After the hearing, committee Chair Mike Crapo (R-Idaho) said he believed Long “explained himself very well, and I don’t have any further comment.”

Crapo declined to answer whether he thought the tribal tax credits were legitimate.

“I heard it said that the IRS says that they aren’t there. If that’s what the IRS said, that’s what they said,” Crapo told reporters.

ERC Promotion

Long has also been dogged by questions related to his promotion of the ERC, created during the pandemic to help employers retain workers, but which subsequently has become a target of fraud.

Sen. Ron Wyden (D-Ore.) Tuesday pressed Long about his comments on a podcast that everyone qualifies for the ERC. Long clarified that he said “virtually everyone” qualifies for the credits.

Longtime ERC critic Sen. Thom Tillis (R-N.C.) asked Long whether he had problems with Congress ending the program.

“I have concerns about being fair,” Long said, explaining that he worried that some who followed the law to receive the credit would lose out with the end of the program that he and other members of Congress promised and voted on.

Tax-exempt Groups and Taxpayer Services

Democrats also asked Long whether he would bend to pressure from Trump and use the IRS to target tax-exempt groups. The president has threatened to yank the tax-exempt status of Harvard University and scrutinize tax-exempt applications and status of other perceived adversaries.

“I don’t intend to let anybody direct me to start an audit for political reasons,” he said in response to questioning from Sen. Elizabeth Warren (D-Mass.).

Despite GOP efforts to claw back billions in supplemental funding for enforcement the IRS got in the Democrats’ 2022 tax-and-climate law, Republicans have been willing to protect funding for taxpayer services.

Long acknowledged that during his dozen years in Congress, taxpayer issues related to IRS “was a large part of our constituent services.”

But Democrats Tuesday pushed Long on the Trump administration’s cuts to the agency. Sen. Maggie Hassan (D-N.H.) asked him about cuts to the Taxpayer Advocate Service in her state and how it’s “significantly increased” wait times.

While Long said he’d seek to preserve those jobs, Hassan pointed out that many jobs had already been cut, resulting in declining customer service.

“I don’t think having worse customer service is acceptable,” Long responded.