You may have heard that President Trump nominated former Missouri Congressman Billy Long to be IRS Commissioner. And, after a remarkably protracted delay, Long's confirmation hearing finally happened on May 20. That's months after his nomination and amidst major leadership and tax reform turmoil. (More on the hearing later.)
For many reasons, Long's nomination has sparked debate.
First, the former congressman's background as a certified auctioneer with limited tax experience and no college degree distinguishes him from typical IRS commissioner nominees.
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The nomination is also notable because IRS commissioners have traditionally been allowed to complete five-year terms, regardless of White House administration changes. (IRS Commissioner Danny Werfel, appointed by President Biden, term was set to run until 2027.)
However, Werfel stepped down on January 20, Trump's inauguration day.
Since then, the IRS has cycled through five acting commissioners, including Douglas O'Donnell, Melanie Krause, Gary Shapely, and Michael Faulkender, as the agency struggled with leadership instability.
As Kiplinger reported, each transition was marked by internal disagreements and policy controversies, especially related to data sharing with Trump's Department of Government Efficiency (DOGE), budget cuts, and layoffs.
Meanwhile, Trump has praised Long, writing on his social media platform, Truth Social: "Taxpayers and the exceptional staff at the IRS will appreciate having Billy in charge.”
If confirmed, Long would oversee an agency with approximately 85,000 employees (that number has fallen due to layoffs) and an annual budget of over $12 billion. The IRS is grappling with a $20 billion reduction in special funding and a proposed $2.2 billion cut to its annual budget.
The agency had also undergone major modernization and tax compliance efforts targeting wealthy non-filers and complex corporations. Those initiatives, which came alongside a new IRS free tax filing program, Direct File, are now at risk of being eliminated or significantly changed.
Meanwhile, Republicans, who control Congress and the White House, are preparing to reshape tax policy before key aspects of the Tax Cuts and Jobs Act (TCJA) expire. (More on that later.) And Trump has floated the idea of a new External Revenue Service (ERS) to handle tariffs, which he has argued could eventually replace income taxes.
So…how could this leadership shakeup at the IRS impact you? Read on.
IRS Commissioner nominee goes before Congress
In a move that broke tradition, IRS Commissioner Danny Werfel stepped down on January 20, 2025 — the day Donald Trump returned to the White House for a second term as president.
As mentioned, IRS commissioners typically serve their terms regardless of administration changes, and Werfel’s term wasn't set to end until November 2027.
During his time as commissioner, Werfel focused on modernizing the agency and enhancing enforcement capabilities and customer service using resources provided by the Inflation Reduction Act. However, those efforts met opposition from some Republican members of Congress who were against additional IRS funding.
Following Werfel's departure, the IRS saw unprecedented turnover, with five acting commissioners in less than five months. That instability contributed to uncertainty and chaos at the tax agency.
Additionally, the IRS is currently dealing with significant workforce upheaval: Over 11,400 employees have either taken Trump's federal buyout offers or been laid off. (There have also been several rounds of rehires as the agency tries to stabilize operations.) Morale has reportedly been impacted, and some critical modernization projects have slowed.
And now, after months of delay, Billy Long's confirmation hearing is finally scheduled.
Who is Billy Long? Trump's IRS pick
Billy Long, a former Republican congressman from Missouri, has been tapped by President-elect Donald Trump to lead the IRS.
- Long served six terms in the U.S. House of Representatives from 2011 to 2023
- He occasionally used auctioneer bid calling during congressional hearings and, during his tenure, co-sponsored tax-related legislation.
- The former Congressman has also espoused the controversial Employee Retention Tax Credit (ERTC or ERC).
For example, since leaving Congress, Long has promoted ERTC claims, working with firms that processed these applications for a fee. Critics argue that Long's participation in an industry fraught with scams creates a significant conflict of interest, especially considering the IRS' role in rooting out improper ERC claims.
As Kiplinger has reported, the pandemic-era tax credit has become notorious for widespread fraud, prompting the IRS to temporarily halt ERC claim processing.
- An IRS review of one million employee retention credit claims found that between 70% and 90% of filed claims show signs of fraud or error
- That represents over $86 billion in potentially improper claims
- Ongoing criminal investigations have uncovered 323 cases involving more than $2.8 billion of suspected fraudulent ERC claims from 2020 to 2023
The ERC controversy adds another layer of scrutiny to Long's nomination, which has already spurred mixed reactions. Some praise the former auctioneer’s potential outsider perspective, while others question his qualifications for managing a complex federal agency like the IRS.
Long’s IRS confirmation hearing highlights tax credit controversies
Long’s May 20 Senate confirmation hearing was marked by questions about his involvement with dubious tax credits and his ties to companies that promoted them.
Some senators pressed Long on his role in marketing so-called "tribal tax credits" that the IRS says don't exist, and his financial gains from those activities. Long denied wrongdoing, saying he was unaware the credits were illegitimate and maintained that he complied with ethics requirements.
Another major hearing theme was Long’s unwillingness to give a clear answer on whether he would resist presidential efforts to use the IRS for political purposes, like targeting nonprofits that the administration opposes.
The committee didn't reach a decision, leaving Long’s nomination unresolved as senators called for further review and debate.
IRS tax overhaul?
Under Commissioner Werfel, the IRS underwent a substantial multi-billion-dollar overhaul, primarily due to about $60 billion in Inflation Reduction Act (IRA) funding. As mentioned, those changes included improvements to customer service, an increased focus on wealthy “tax cheats,” and a new IRS free filing program, to name a few initiatives.
New leadership at the IRS's helm will steer the agency in a new direction. Already, the pace of modernization has reportedly slowed, while several IT upgrades and enforcement initiatives have been delayed or paused.
A new, controversial data-sharing agreement with ICE has also prompted resignations among senior staff and raised concerns about taxpayer privacy.
At the same time, Republicans in Congress have signaled an intention to reduce IRS funding. One proposal is to cut the agency's budget for FY25 by $2.2 billion from fiscal 2024 levels. This aligns with a broader conservative desire to curtail the agency's resources and scope.
Another target is the IRS Direct File program. Republican lawmakers are pushing to end the initiative.
IRS Direct File is a free online service that allows eligible taxpayers to submit their federal tax returns directly to the IRS. The system, criticized by some lawmakers and industry tax prep giants like Intuit TurboTax and H&R Block, eliminates the need for third-party tax software or professional assistance for some filers.
It’s also worth noting that Project 2025, a conservative blueprint for U.S. governance, calls for a two-rate individual tax system and the elimination of most deductions and credits. Long's past co-sponsorship of tax-related legislation suggests alignment with those goals.
For example, while in Congress, Long supported the Tax Code Termination Act, which sought to abolish much of the existing tax code and replace it with a more straightforward system. Long also backed measures to move to a national sales tax and abolish the IRS.
Trump's "One Big, Beautiful Bill"
Meanwhile, in terms of tax policy, Republicans controlling both chambers of Congress and the White House are working to extend much of the TCJA.
Lawmakers are expected to use the budget reconciliation process, which requires only a simple majority in the U.S. Senate, to pass tax legislation this summer.
- Key priorities could include making individual tax cuts permanent, maintaining the lower corporate tax rate, and expanding certain business deductions.
- However, narrow Republican majorities in both houses and deficit concerns may require compromising on key provisions or considering temporary extensions.
- For more information, see Trump's 'One Big, Beautiful Bill' With Trillions in Tax Cuts.
Trump IRS commissioner nominee: Bottom line
As the Senate prepares for Billy Long's confirmation hearing, the agency faces questions about its future direction, morale, and ability to serve taxpayers effectively.
Would tax reform result in fewer deductions or lower tax refunds for some taxpayers? Could a lack of funding or loss of other resources derail IRS customer service and modernization improvements and slow tax refund processing? Would millions of taxpayers be concerned if a free, government-provided tax filing option, Direct File, were eliminated?
Meanwhile, the House GOP's massive tax and spending bill, dubbed the "One Big Beautiful Bill Act," has advanced out of committee after a rare late Sunday night vote.
The legislation, among other things, proposes to make Trump's 2017 tax cuts permanent and would offset some of the over $5 trillion in tax cuts with billions in cuts to Medicaid, SNAP, and clean energy programs.
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