WHO IS BILLY LONG?

Ar A Brief Biography of Trump’s Nominee for IRS Commissioner

On December 6, 2024, president-elect Trump announced that he would nominate Billy Long to the position of IRS Commissioner. So, who is Billy Long?

 Background

 Billy Long is a former Republican U.S. congressman from Missouri. He served six terms in the House of Representatives, from 2011 to 2023. He lost his run for the Senate in 2022 and retired from Congress after his term expired.

Surprisingly, Long has no background whatsoever as a tax or financial professional. He is not an attorney, accountant or CPA, and he has no tax-industry experience, either as a tax planner, tax preparer or in the problems-resolution world. Nor does he have experience leading large organizations such as those with the staff, budget, and scope of responsibilities as the IRS.

 Prior to serving in Congress, Long worked in central Missouri as a certified auctioneer, as well as in the real estate industry. He also hosted an AM radio talk show. While in Congress, he did not serve on the tax-writing Ways and Means committee, or any of the various IRS oversight subcommittees. He served on the Energy and Commerce committee where his work addressed health care issues and rural broadband access.

 What’s the Attraction?

 What likely makes Long attractive to the Trump team is his apparent opposition to the U.S. tax code in its current form. Long was a staunch supporter of Trump’s Tax Cuts and Jobs Act, as well as an advocate to repeal the estate and gift tax in its entirety.

Even beyond that, Long supported the Tax Code Termination Act, H.R. 352 (January 2013). That bill sought to abolish much of the existing tax code. The bill called for “a new Federal tax system” that was “simple and fair.” The bill went on to describe the elements of an alternative system that Congress was instructed to adopt in place of the current income tax. Those elements are: 

  • A low rate for all Americans,
  • Tax relief for working Americans,
  • Protection of the rights of taxpayers and the reduction of tax collection abuses,
  • Elimination of the bias against savings and investment,
  • Promotion of economic growth and job creation, and
  • No penalty for marriage or families. 

Though fairly well-supported by conservatives, the bill was largely symbolic. It was designed to send the message to Congress and America that there is growing support in Washington for the idea of trashing our current tax system and adopting one that is simple, fair, and efficient. My treatise, Ten Principles of Federal Tax Policy, drove much of the thinking behind the bill.

The Rap on Long

After leaving Congress, long apparently became associated with companies allegedly involved in marketing services to businesses in connection with the Employee Retention Credit (ERC). This is one of several COVID-era government give-aways created by Congress as part of the CARES Act of March 2020. The purpose of the ERC was to provide a refundable tax credit to businesses impacted by lost revenue or government shut-down orders during 2020 and 2021. Qualifying businesses had to (among other things) keep employees on the payroll during that time. For qualifying businesses, the credit was very lucrative.

Because of the credit’s complicated and changing rules, and because the credit represented “free” money from the government, rampant fraud grew up around the program. It became such an issue that in September 2023, the IRS suspended the processing of ERC claims until it could get its arms around how it would review claims for accuracy and legitimacy before issuing large (often six-figure) refund checks. In late 2023 and into 2024, the IRS offered a withdrawal and voluntary repayment program to businesses that filed erroneous ERC claims.

 Ron Wyden, (D-Ore.), is raising a stink over Long’s involvement with firms marking services to businesses to help them claim the credit. Wyden said, “Long’s work peddling ERC claims is deeply concerning in light of the industrial level of fraud that has taken place across the scam-plagued ERC industry.” The not-so-veiled suggestion is that because Long was involved in marketing ERC assistance to businesses, and because there were billions of dollars in fraudulent ERC claims, Long must be guilty of ERC fraud.

 But this idea ignores two facts. First, the ERC is a part of the Internal Revenue Code and millions of businesses legally claimed the credit. And yes, the dollar amounts involved with fraudulent claims are gaudy, but that ignores the fact that Congress intended businesses to have the “free” money or it would not have passed the CARES Act to create the credit and subsequent laws to enhance it.

Secondly, Wyden has been a U.S. Senator since 1996 (and a U.S. congressman before that). He was part of the congressional team that created the ERC in the first place. In 2020, he served as the ranking member of the powerful Senate Finance Committee. There’s no way the ERC would have become law without the approval of that committee, and Wyden was instrumental in getting the CARES Act passed. He clearly supported the idea of responding quickly to the financial hardships faced by American citizens and businesses because of the pandemic, both through the ERC and through Paycheck Protection Program loans.

 The fact that hundreds of tax pros created what amounts to a cottage industry helping businesses apply for the credit should come as no surprise. Likewise, it should come as no surprise that fraudulent claims seeking the “free” government money were made by some unscrupulous actors. But that certainly doesn’t mean that Long deliberately helped unqualified businesses file knowingly false ERC claims.

 Should Long be questioned about it? Sure. Should he be disqualified just because he might have helped businesses claim the credit? Certainly not, unless such claims were deliberately fraudulent.

 A Change in Leadership

 The current IRS commissioner is Danny Werfel. Werfel was appointed by President Biden to a five-year term that will expire in 2027. Typically, a sitting commissioner serves out his term before a new president appoints a successor. However, the incoming president is certainly permitted to change leadership in any agency. The question is how new leadership will affect the IRS’s overall mission and the ongoing overhaul of the agency brought about by the $60 billion infusion of revenue from the Inflation Reduction Act (IRA).

 The Job at Hand

 If he’s confirmed, Long will take the wheel of the world’s largest police force. The IRS currently has about 85,000 employees and an annual budget of about $12.5 billion. When you add the supplemental funding from the Inflation Reduction Act, we’re talking about roughly $20 billion annually.

 At this time, the IRS is spending billions on tax systems modernization and has launched a number of compliance initiatives to increase audits and collection. I have been quite critical of the fact that the vast majority of Inflation Reduction Act funding was ear-marked for tax law enforcement, while precious few dollars were directed at taxpayer assistance, outreach and education. Some in Congress have been equally concerned about this disparity, to the point where some Republicans in Congress have expressed the desire to reduce IRS funding.

 Exactly how Long might balance the competing interests of: (a) sufficiently funding the agency responsible for collecting all the nation’s revenue, against (b) the public’s concern that such collection be no more invasive then necessary, remains to be seen.

Subscribers of Pilla Talks Taxes get the rest of the articles in this issue including:

TCJA FIGHT FOCUSES ON “SALT” -Some House Members Say “No SALT, No Deal”

TAX COURT REJECTS EQUITABLE TOLLING IN REFUND CASES – Overpayments Lost to Untimely Refund Claims

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Articles found in the latest
PILLA TALKS TAXES ISSUES:

JANUARY

TCJA FIGHT FOCUSES ON “SALT”
Some House Members Say “No SALT, No Deal”

WHO IS BILLY LONG?
A Brief Biography of Trump’s Nominee for IRS Commissioner

TAX COURT REJECTS EQUITABLE TOLLING IN REFUND CASES
Overpayments Lost to Untimely Refund Claims

2024 TAXPAYERS DEFENSE CONFERENCE   Attendee Testimonials

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