Billy Long, President Donald Trump’s nominee for IRS commissioner, minimized his role in selling tax credits that the Treasury Department and IRS claim do not exist and expressed a willingness to cooperate with any investigation into the matter.
During a Senate Finance Committee hearing, the former Missouri congressman said his role in the promotion of unfounded sovereign tribal tax credits was limited to directing people to Capitol Edge Strategies, a firm that, according to ethics filings, paid him roughly $65,000 and marketed the credits online. Long maintained he was unaware the credits were problematic at the time.
In response to an inquiry from Senate Democrats, the IRS informed lawmakers that the tax credits in question do not exist. “We can confirm that these tax credits do not exist,” the agency stated in a March letter. Bloomberg Tax reported on the existence of the tax credit arrangement.
Sen. Catherine Cortez Masto (D-NV) and ranking member Ron Wyden (D-OR) called on the IRS to open a criminal investigation into the promoters of the tax credits last month and pressed Long on his involvement during the hearing.
“You did refer tribal tax credits to individuals, correct?” Cortez Masto asked.
“I referred them to Capitol Edge Strategies,” Long replied.
“So, knowing that they are illegal and the IRS has said they are illegal, how do you stand here before the committee and tell the chairman just a few minutes ago that you have no conflict of interest,” Cortez Masto said.
Long said he relied on the Office of Government Ethics and was unaware the tax credits were invalid. He added that when told the IRS rejected the credits, staff members wouldn’t say who made that determination, and he believes the matter warrants further investigation.
Long’s involvement in promoting questionable tax incentives places him at odds with the IRS’s crackdown on possibly abusive schemes. His track record has heightened fears that tax enforcement could weaken significantly under his leadership, especially as the Trump administration has already reduced much of the agency’s audit workforce.
Senate Finance Committee Chairman Mike Crapo (R-ID) attempted to preempt Democratic scrutiny by beginning the hearing with a series of rapid “yes or no” questions about the tax credit scheme.
Long testified that he never met anyone from White River Energy Corporation, did not provide tax advice, and only made referrals to firms like Capitol Edge Strategies. He said he advised clients to consult legal or financial professionals and was unaware the tax credits were invalid at the time.
In 2022, Long’s inactive Senate campaign in Missouri saw an influx of over $135,000 in contributions, much of it from people linked to White River Energy, Lifetime Advisors, and other firms involved in marketing tax credits. According to campaign finance records, Long later reimbursed himself for a personal loan to the campaign using those funds.
Wyden questioned the donation from the companies, pressing Long to explain who he spoke with to secure those funds and highlighting concerns about possible pay-to-play. Long responded that he strictly followed Federal Election Commission rules.
“Anytime you’re dealing with the FEC, you have to follow FEC guidelines, and that’s exactly what I did all the way,” Long responded.
Wyden asked Long whether he believes the tribal tax credits actually exist. Long said he couldn’t give a simple “yes or no” answer.
“I do not know. I think the jury’s still out on that. I know since 2022, they’ve been accepting them, so now they claim that they’re not, that they haven’t been, so I think that all this is going to play out, and I want to have it investigated, just as you do. I know you’re very interested in this subject. I am, too,” Long said.
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Ahead of the hearing, Long was also discovered to be following numerous adult content creators on X. The Trump administration attributed the matter to “unauthorized access,” according to the Rolling Stone. A transition official said Long’s account was hacked.
Since the start of the year, the IRS has cycled through at least five interim leaders, as budget reductions and staff downsizing have taken place under Elon Musk’s Department of Government Efficiency. Senior agency leaders have also been at odds with the Trump administration regarding DOGE’s ability to obtain confidential tax records.