Democrats Investigate IRS Nominee Billy Long for Alleged Fraudulent Tribal Tax Credits

WASHINGTON — Senators on the Finance Committee diverged sharply along party lines during a confirmation hearing for former Republican U.S. Rep. Billy Long of Missouri, nominated by President Donald Trump to head the Internal Revenue Service (IRS). The IRS is central to enforcing tax laws as the nation grapples with escalating debt and rising interest costs.

Long, who represented Missouri in Congress from 2011 to 2023 and previously worked as a talk radio host, addressed the committee, emphasizing his intention to eliminate what he termed “stinking thinking” at the IRS. He proposed a “comprehensive plan” to modernize the agency while prioritizing employee retention and satisfaction.

“This does not mean a bloated agency, but an efficient one where employees have the tools they need to succeed,” Long asserted.

The IRS has reportedly experienced a significant staffing decrease, losing over 11,000 employees—a reduction of 11%—due to various factors, including deferred resignations and the firing of probationary staff since Trump’s second term began. Trump announced his intention to nominate Long for the IRS position last December.

Committee Chair Mike Crapo from Idaho expressed faith in Long’s capabilities, suggesting he would direct a “sea change” within the agency to better serve taxpayers. “President Trump called Congressman Long the ‘consummate people person,’” Crapo noted, stressing Long’s commitment to engaging with IRS employees of all levels.

The hearing occurred amidst ongoing budget reconciliation discussions, aiming to extend and expand the tax law enacted in 2017, thereby increasing IRS obligations. Senator James Lankford of Oklahoma voiced confidence in Long’s dedication, highlighting the imminent tax legislation that would necessitate significant IRS instruction and guidance.

Democrats, however, approached Long’s nomination with skepticism. Their concerns were amplified by revelations concerning donations to Long’s previous Senate campaign, purportedly received post-nomination, and his affiliation with a firm marketing nonexistent tribal tax credits.

“The American people deserve to know if the future IRS commissioner is a crook,” stated Senator Ron Wyden of Oregon, the highest-ranking Democrat on the panel. Long has denied any wrongdoing.

Questioned by Senator Catherine Cortez Masto of Nevada, Long defended his actions related to the promotions, claiming compliance with ethical guidelines. “I did not have any perception whatsoever that these (credits) did not exist,” he replied, despite continued pressure from the committee.

Further inquiries from Democrats included concerns over Trump’s comments regarding the potential revocation of tax-exempt status for Harvard University due to its noncompliance with the administration’s demands. Wyden described Long as a “MAGA devotee,” asserting that Trump aims to politicize the IRS to suppress dissent.

Senator Elizabeth Warren challenged Long on ethics statutes prohibiting presidential directives regarding tax audits for specific individuals. Long admitted he could not adequately address the legal parameters surrounding such actions.

Republicans also questioned Long about improving IRS customer service, especially after the party succeeded in opposing new IRS funding under President Joe Biden. Senator Todd Young of Indiana criticized the agency’s technological shortcomings and customer service failures, demanding Long’s commitment to a modernization plan focusing on transparency and infrastructure improvements. Long assured Young he would prioritize these issues if confirmed.