President-elect Trump's nomination of former Rep. Billy Long as IRS Commissioner would mark a significant shift in agency leadership and policy direction, particularly concerning the Employee Retention Credit (ERC) program and agency oversight.
If confirmed, Long would replace current Commissioner Daniel Werfel before the expiration of Werfel's term in 2027—marking the first time since the IRS Restructuring and Reform Act established five-year terms that a sitting commissioner would be removed during a presidential transition. This departure from recent precedent raises questions about agency continuity, as previous commissioners typically served across administrations.
Long's background and positions merit particular attention from tax professionals. During his 12-year congressional tenure, he supported legislation to abolish the IRS, including the Fair Tax Act, which would have replaced the current tax system with a national sales tax. More recently, Long's involvement with the ERC program has drawn scrutiny. After leaving Congress in 2023, he worked with Lifetime Advisors, LLC, a firm filing ERC claims for businesses, though the firm stopped accepting new claims in November 2023.
The nomination has generated mixed reactions regarding ERC administration. Some practitioners view Long's experience positively, suggesting he might implement a more taxpayer-friendly approach to the credit. Justin Elanjian of Stout Risius Ross LLC noted that Long's perspective aligns more closely with Congressional intent for a broad-based program. However, Senate Finance Committee Chair Ron Wyden expressed concerns about Long's connection to what he termed the "scam-plagued" ERC industry.
For tax preparers, Long's potential leadership could signal shifts in several key areas:
The confirmation process is expected to focus heavily on Long's plans for these areas, particularly his approach to the ongoing ERC backlog and fraud investigations. As of July 2024, the IRS Criminal Investigation division had opened 460 cases involving claims worth nearly $7 billion.
Senate confirmation hearings will likely address both Long's vision for the agency and his past positions on tax administration, including his previous support for legislation affecting IRS operations and employee organization rights.