Senate questions IRS nominee Billy Long on political influence and tax credit ties

[UNITED STATES] Senators questioned President Donald Trump’s nominee for IRS Commissioner, former Missouri Congressman Billy Long, during a confirmation hearing Tuesday, focusing on his views about presidential authority over the agency, the handling of taxpayer data, and his involvement with questionable tax credits.

Long, an ex-auctioneer who served six terms in the House of Representatives, appeared before the Senate Finance Committee at a critical juncture for the IRS. The agency is under increasing scrutiny over issues such as taxpayer privacy, enforcement strategies, and political independence. Ongoing controversies—like allegations that audit practices disproportionately target low-income taxpayers over wealthier individuals—have intensified demands for accountability and transparency. Long’s confirmation could shape the agency’s direction on these matters for years to come.

A central line of inquiry from Democrats revolved around the extent of presidential control over the IRS. Long sought to distance himself from political influence, stating, “the IRS will not, should not be politicized on my watch.”

Sen. Elizabeth Warren, D-Mass., who submitted her questions to Long in advance, posed a pointed query: Could the president legally revoke Harvard University’s tax-exempt status? Such a move, she argued, would signal sweeping executive power over tax policy. Long did not answer the question directly.

“I don’t intend to let anybody direct me to start [an] audit for political reasons,” he replied.

The issue touches on long-standing debates over the IRS’s independence. While the agency operates as part of the Treasury Department, legal scholars have questioned how insulated it truly is from presidential directives—concerns heightened by Trump’s public clashes with institutions like Harvard over topics such as affirmative action.

Sen. Ron Wyden, D-Ore., also pressed Long on his promotion of the pandemic-era employee retention credit, a tax break worth thousands per eligible worker. The credit became a hotbed for opportunistic firms marketing the benefit to businesses that didn’t qualify.

“I didn’t say everyone qualifies,” Long defended. “I said virtually everyone qualifies.”

The employee retention credit (ERC) has become a focal point in tax policy debates, with the IRS working to crack down on fraud while still delivering relief to qualifying businesses. Amid a flood of questionable claims, the agency paused processing new ERC applications, spotlighting the challenge Long would face in balancing enforcement with taxpayer support.

Lawmakers also questioned Long about income he received from companies promoting “tribal tax credits”—incentives the IRS has reportedly told Democrats do not exist.

“I did not have any perception whatsoever that these did not exist,” Long told the committee.

Further concerns were raised about political donations from individuals linked to those tax schemes made to Long’s now-dormant Senate campaign, following his nomination.

Ethics groups have flagged Long’s financial entanglements as potential conflicts of interest, especially given his promotion of tax strategies currently under IRS investigation. While Long has denied wrongdoing, the matter highlights broader anxieties about the revolving door between Capitol Hill, lobbying interests, and federal agencies.

As Democrats dug into Long’s financial and political record, Republicans on the committee largely shifted focus to taxpayer service. Several GOP lawmakers, including Committee Chairman Mike Crapo, R-Idaho, expressed their support for Long’s nomination.

If confirmed, Long would help steer an agency that has recently undergone a major modernization effort, including investments in customer service, technology, and the rollout of a free tax-filing program known as Direct File.

Asked about the future of Direct File, Long said he intended to review the initiative thoroughly, calling it “one of the hottest topics at the IRS.”

Following the resignation of former Commissioner Danny Werfel in January, the agency has cycled through three interim leaders. Long, if confirmed, would serve the remainder of the term through November 12, 2027. A vote date has not yet been scheduled.

Former IRS Commissioner Mark Everson, who led the agency from 2003 to 2007, described Long as an “unconventional pick” compared to prior commissioners but noted his legislative background could be an asset.

“He’ll have credibility up on the Hill with the people who matter, which will be important,” said Everson, now vice chairman at the consulting firm Alliant. Long, he added, may be “better positioned than others to argue for the appropriate independence of the agency.”