Senator Ron Wyden (D-Ore.), a key member of the Senate Finance Committee, expressed concerns on Tuesday regarding Billy Long, former Congressman from Missouri and President Trump’s nominee. He referenced recordings from business colleagues of Long who, according to Wyden, are anticipating favorable treatment once he takes office.
Wyden highlighted instances where tax promoters were caught on tape discussing meetings at the inauguration ceremony. “Our staff investigators captured tax promoters on tape saying they met and made an appointment with them,” he noted during Long’s confirmation hearing.
Long has been involved in promoting tax credits, particularly during the government’s $5 trillion stimulus rollout amid the pandemic. This revelation from Wyden came toward the end of Long’s confirmation hearing. Long didn’t get a chance to respond directly but defended his role in promoting tax credits, especially around controversial “tribal” tax credits.
“My only connection in this matter was linking friends of mine who expressed interest,” Long stated.
The first recording Wyden mentioned involves former lawmakers supposedly promising tax promoters favorable IRS rulings. There are ongoing concerns about potential advantages given to White River Energy concerning these disputed tax credits.
“We also have recordings from White River CFOs who contributed thousands of dollars, hoping for favorable treatment regarding these alleged tribes,” Wyden added.
Long reportedly received $65,000 from White River but claimed he hadn’t communicated directly with them, insisting he worked “through” another entity, Capitol Edge Strategy. He struggled to identify any Native American tribes involved in the tax credit promotions he contested.
“I worked through Capitol Edge Strategy. I didn’t conduct any work. I have never interacted with anyone from White River,” he asserted.
While Democrats raised concerns over Long’s potential conflicts of interest and his past interactions with the presidency, Republicans supported him, citing his experience as beneficial for small businesses.
“He brings a fresh perspective that the IRS needs,” said Senator Marsha Blackburn (R-Tenn.). “Before entering public service, he owned a small business and worked as a professional auctioneer, which aligns him with the everyday issues small business owners face.”
Democrats on the Finance Committee released statements detailing the connection between Long and White River Energy, alleging that the company sold fraudulent tax credits to investors and relied on a connection at the IRS for leniency.
They suggested that Long’s Senate campaign received donations shortly after those tax credits were discredited.
“In mid-January, folks from White River decided to contribute to Congressman Long’s Senate campaign, which has been grappling with debts for over two years,” they mentioned.
The White House has not yet responded to inquiries regarding the situation. White River hasn’t addressed questions about the nature of its relationship with Long or the $65,000 payment.
During the confirmation hearing, Democrats concentrated on Long’s activities as a tax credit promoter, labeling it a clear conflict of interest. “We have an obvious conflict here, with payments tied to marketing tax credits,” remarked Senator Tina Smith (D-Minn.) during the hearing.
The IRS has experienced several leadership changes since President Trump assumed office. Typically, IRS commissioners serve as nonpartisan civil servants, but the previous commissioner, Danny Werfel, resigned just before Trump took office after promising to dismiss him.
Since then, acting commissioners have dealt with internal disputes, including tensions between Treasury Secretary Scott Bescent and Presidential Advisor Elon Musk regarding access to a government cost-saving panel.
Under the Biden administration, the IRS has undergone a significant transformation, including an $80 billion overhaul and a recruitment campaign that Republicans have challenged. The Trump administration implemented considerable workforce cuts, particularly in tax compliance roles. Reports indicate that IRS agencies could lose up to 40% of their workforce in the coming years.
“The IRS is at a pivotal moment. We need leaders capable of not just discussing modernization but also implementing it effectively,” Blackburn stated at the hearing.
