President-elect Donald Trump announced his intent to nominate former Rep. Billy Long, R-Mo., to be IRS commissioner on Dec. 4.
Long, a six-term congressman, real estate broker, and former auctioneer, did not sit on the House Ways and Means Committee during his time on Capitol Hill, but has spent time out of Congress consulting with businesses around employee retention tax credit claims with two consultancies, Commerce Terrace Consulting and Lifetime Advisors. Long’s work with ERC promoters could draw scrutiny during the confirmation process, as the IRS and nongovernmental experts have raised concerns over fraud within the broader ERC claims industry.
While current Commissioner Danny Werfel’s term does not end until 2027, Long’s nomination is a clear indication that Trump will replace him, which is a break from recent tradition. IRS commissioners have generally been allowed to serve out their five-year terms even after a change in administration since the five-year term was codified in 1998, including John Koskinen, who Trump inherited in his first term. Charles Rettig, Trump’s first IRS pick, was also kept in place by President Joe Biden for the duration of his term.
Werfel been less of a political lightning rod than Koskinen, whom Republicans accused of covering up discrimination against conservative nonprofits. But congressional Republicans have criticized Werfel for expanding the IRS’s Direct File program, with 29 urging Trump to end the program in a letter sent to the president-elect on Dec. 10. Some also disagree with recent 1099-K guidance issued by the agency.
Long’s nomination casts further doubt on recent enforcement and modernization efforts advanced during the Biden administration. Biden and congressional Democrats made increased IRS funding and enforcement a priority, which Republicans have fiercely opposed.
The funding, which was already reduced by $20.2 billion in a government funding deal earlier this year, is likely to be targeted for further rescission or reallocation to other priorities by Republicans and the Trump administration in the next Congress. Cutting or reprogramming the additional funds intended for the IRS is an explicit political goal for Republicans, though the unusual budgetary dynamics around the additional IRS resources, which were ‘scored’ by the Congressional Budget Office as a net gain for the federal government, could affect their approach towards this goal.
Long’s lack of tax experience has already drawn criticism from Democrats. But he left Congress in decent standing among his fellow Republicans. That, combined with the fact that Republican senators may be more inclined to spend political capital with the Trump administration in opposition to controversial nominees for other cabinet positions, may be enough for him to earn confirmation.
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