US: IRS Commissioner Resigns on Trump´s Inauguration Date, Democrats Raise Concerns Over IRS Nominee 

| IRS Commissioner Danny Werfel

Internal Revenue Service (IRS) Commissioner Danny Werfel has announced his decision to step down, coinciding with President-elect Trump’s inauguration on Monday, despite his term being set to expire in 2027. Werfel informed IRS staff on Friday that his early resignation would be in the agency’s best interest, as Trump plans to appoint a new commissioner.

“Although I had intended to fulfill my full term, the president-elect has indicated his intent to nominate a new IRS commissioner,” Werfel explained. 

Werfel’s decision followed discussions with IRS employees, Congress members, Trump’s transition team, and other key stakeholders. Instead of staying on and risking a forced dismissal, Werfel chose a path to facilitate a smoother transition. Trump has nominated former Rep. Billy Long, R-Mo., to take over the role. Typically, IRS commissioners serve five-year terms to prevent alignment with presidential cycles, but they remain subject to removal by the president.

CONCERN OF DEMOCRATS

U.S. Senator Elizabeth Warren (D-Mass.), a member of the Senate Finance Committee, has voiced serious concerns about Billy Long, President-elect Trump’s nominee for IRS Commissioner. In a letter addressed to Long, Warren questioned his qualifications and his involvement in potential abuses of the Employee Retention Tax Credit (ERTC).

Long, who describes himself as a “Certified Business and Tax Adviser,” has come under scrutiny for what Warren characterizes as a lack of substantial management or tax experience. The certification Long touts reportedly requires only a three-day training, which Warren suggests is insufficient for someone aspiring to lead the IRS. “Your lack of significant management or tax experience—and your promotion of credits that have been 'magnets for fraud'—raise serious questions about your qualifications,” wrote Warren.

Following his departure from Congress in 2023, Long worked with Commerce Terrace Consulting and Lifetime Advisers, firms that aggressively promoted the ERTC. This refundable tax credit was intended to support businesses affected by the COVID-19 pandemic. However, some firms, known as “ERTC mills,” have exploited the credit’s eligibility criteria, resulting in fraud and delays for legitimate businesses.

Long’s promotion of the ERTC has been particularly controversial. He claimed that “everybody qualifies” for the credit and encouraged his social media followers to contact him for significant tax savings. Long boasted about securing a $3.6 million refund for an organization, although the organization later dropped its claim after realizing it might not qualify.

Lifetime Advisers, a firm Long promoted, has been criticized for its aggressive stance on ERTC eligibility. The company reportedly received 20% of a $300,000 ERTC credit in fees from a client. External auditors have described Lifetime’s interpretation of ERTC eligibility as bordering on absurdity, prompting some clients to return refunds to avoid IRS audits.

Senator Warren emphasized the need for transparency regarding Long's role in promoting the ERTC. She noted that a podcast episode featuring Long discussing his efforts to push the ERTC was recently removed from major platforms, raising concerns about attempts to obscure his record.

“Billy Long’s nomination to lead the I.R.S. is bad news for middle-class taxpayers and a win for ultra-wealthy tax cheats,” Warren stated. “If he’s confirmed, taxpayers can expect longer wait times for customer service, a more complicated process to file taxes, and free rein for the rich and powerful to continue rigging the system at the expense of everyone else.”

Warren’s letter underscores the Democrats' apprehension about Long’s appointment, highlighting a broader concern about the integrity of the IRS under his potential leadership.

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