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:
- ERC claim processing and fraud prevention policies
- Agency enforcement priorities
- Customer service improvements
- Technology modernization efforts
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.
Christine Gervais is a licensed CPA, using her skills to help businesses grow and achieve their fullest potential. Christine has a Master’s degree in accounting from Southern New Hampshire University in addition to holding her CPA license for over a decade. Notably, Christine is a nationally recognized speaker providing education to other CPAs on how to best serve clients as well as instruction on a wide variety of topics for business owners on how to maximize success. Christine prides herself on the value she can bring to clients with her extensive tax knowledge and provides strategic, forward-thinking financial strategies to help clients grow. When not behind her desk, you can find Christine spending quality time with her daughter and stepson or tending to the family’s excessively loved farm animals.
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