The Senate Finance Committee questioned Billy Long, President Donald Trump’s pick for IRS commissioner, about his potential conflicts of interest and tax experience during a May 20 hearing.
If confirmed, Long would be the sixth person to head the IRS since the beginning of 2025. The last Senate-approved commissioner, Danny Werfel, resigned just before Trump took office. The agency is now on its fourth acting commissioner, Michael Faulkender, who is concurrently serving as Treasury deputy secretary.
Trump tapped Long, a former Missouri congressman, for the role back in December. This was unusual because IRS commissioners are appointed for five-year terms, and Werfel’s term was not set to expire until late 2027.
Since then, Senate Finance Democrats have called into question Long’s inexperience with tax policy — and seeming antipathy toward the IRS. In addition to his congressional experience, Long has been an auctioneer and businessman. And while in Congress, he co-sponsored the Fair Tax Act, which would have abolished the IRS; repealed income, payroll, and estate and gift taxes; and enacted a national sales tax.
Senator Elizabeth Warren (D-MA) doubled down on Democrat concerns Sunday before the hearing with a 14-page letter questioning Long’s record and highlighting potential ethical issues.
Conflicts of interest.
On Tuesday, Democrats pressed Long on his recent work involving the Employee Retention Credit and “tribal tax credits.” Ranking Member Ron Wyden (D-OR) accused Long of “steering clients to firms that sold faked tax shelters and pushing small businesses to unknowingly commit tax fraud.”
In particular, Wyden called out Long’s work as a “promoter” for ERC “mills” that allegedly encouraged small businesses to claim the credit even though they did not qualify.
Wyden also accused Long of receiving “donations” to his “long-dormant” Senate campaign fund after being nominated as IRS commissioner. The “majority” of the funds, said Wyden, came from “tribal tax credit promoters, including people at White River [Energy].” The senator said these “tribal tax credits” do not exist — and actually are a tax shelter scheme.
Senator Catherine Cortez Masto (D-NV) questioned how a company being investigated by the IRS for fraud could have made contributions to Long shortly after his nomination was announced. Senator Tina Smith (D-MN), too, said if appointed to the IRS, Long would have a conflict of interest “after receiving payment for tax credits that the IRS says do not exist.”
In a second round of questioning, Wyden pushed Long on his potentially unlawful action related to tribal tax credits. Long assured Wyden that he did not promise any tax promoter that he would help them if he is confirmed as IRS commissioner.
However, Wyden said he had “on tape” a tax promoter saying Long “met with him” and “promised him a favorable private letter ruling.” The senator said he also had a tape of the White River Energy CFO saying “he expects favorable treatment of these fake tribal credits.” To Wyden, these taped conversations are “troubling.”
Politically motivated audits.
Warren and other Democrats also questioned Long about Trump’s potential use of the IRS to punish his enemies — calling out the president’s recent threat to Harvard University.
Warren asked Long whether, under Code Sec. 7217, it is illegal for the president to instruct the IRS to revoke a taxpayer’s nonprofit status. When Long replied that he’d “follow the law,” Warren shot back, “What do you understand the law to be saying?”
Long was noncommittal. “I think it sounds like it’s saying what you’re saying,” said Long of Section 7217, but “I don’t have the answer.”
Senator Peter Walsh (D-VT), too, pushed Long on Trump’s attack on Harvard and other higher educational institutions. “If what you’re saying is not legal, it shouldn’t be done,” Long replied.
Long did, however tell Senator Tina Smith (D-MN) that if he’s instructed by the president to audit a taxpayer, he’d report it to the Inspector General. And he assured Senator Sheldon Whitehouse (D-RI) that he’d be sure that other IRS staff do not circumvent him and take politically motivated actions against taxpayers.
Long’s experience.
Long emphasized that he would draw on his experience in Congress if appointed IRS commissioner — particularly as the agency works to implement a yet-to-be passed tax reform bill. He served as a Missouri representative in 2011 – 2023.
He noted that helping people with tax-related issues was a large part of his constituent services during his years as a congressman. Long did not, however, offer clear answers to specific tax concerns raised by lawmakers on both sides of the aisle.
Senator James Lankford (R-OK) asked Long whether the IRS, under his leadership, would continue issuing “soft letters” rather than initiating audits. “I don’t have all the answers, but I want to develop the answers,” Long emphasized. “I would have liked to spend the last five-and-a-half months having people call me and come into their office and talk about issues, instead of trying to do whatever to prove that I’m everything but a decent human being.”
Long also seemed noncommittal about the future of the free tax e-filing program, Direct File — a frequent subject of attack by Republican lawmakers. “It’s one of the first things I want to drill down on and have meetings on,” said Long. Noting that “people on both sides have different opinions on Direct File,” Long said his goal would be to “get to the bottom of it.”
Meanwhile, the reconciliation bill making its way through the House calls for Direct File to be terminated within 30 days of the bill’s enactment. It further calls for a task force to design a “public-private partnership between the IRS and private sector tax preparation services” to replace both the Free File program and “any ‘Direct eFile’ tax return system.”
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