WASHINGTON (AP) — A former congressman who sponsored laws to abolish the IRS and is now the nominee to guide that company confronted pointed questions from senators Tuesday about his previous promotion of questionable tax credit, his lack of background in tax administration and the political contributions he acquired after being picked to guide the company.
Former U.S. Rep. Billy Lengthy of Missouri appeared earlier than the Senate Finance Committee for his affirmation listening to. He was grilled by Sen. Elizabeth Warren, D-Mass., who questioned whether or not Lengthy believed the president might legally direct the IRS to remove a taxpayer’s tax-exempt standing.
Her questions got here as President Donald Trump, a Republican, has mentioned he needs Harvard College and different non-profit organizations to lose their tax-exempt standing.
Federal regulation prohibits the chief department from exerting affect over taxpayer audits and different investigations.
“I’m going to follow the law,” Lengthy mentioned, including “I’d have to go to the lawyers,” to interpret the regulation.
“What do you understand this law to be saying?” Warren requested. Lengthy mentioned he wouldn’t be capable of reply. After the backwards and forwards, Warren informed Lengthy, “You shouldn’t be within a thousand miles of the directorship of the IRS.”
Lengthy informed senators he had “the opportunity to make real, transformational change to an agency that needs it more than any other.”
The IRS, like different federal companies, has hemorrhaged workers as a result of cuts spearheaded by the Division of Authorities Effectivity, all whereas the company churns by appearing leaders because it awaits a confirmed one.
Douglas O’Donnell, the Trump administration’s first appearing IRS commissioner, introduced his retirement in February as furor unfold over DOGE getting access to IRS taxpayer information. Melanie Krause, the second appearing commissioner, resigned in April over a deal between the IRS and the Division of Homeland Safety to share immigrants’ tax information with Immigration and Customs Enforcement.
Gary Shapley, an IRS whistleblower who beforehand testified about investigations into Hunter Biden’s taxes, was appearing commissioner for a matter of days earlier than being changed by Treasury’s deputy secretary, Michael Faulkender.
If confirmed, Lengthy can be the primary confirmed Trump nominee to guide the tax assortment company.
Democratic senators on the committee have railed in opposition to Lengthy’s nomination, primarily based totally on his previous work for a agency pitching a fraud-ridden pandemic-era tax break in addition to marketing campaign contributions he acquired after he was nominated to function IRS commissioner by Trump.
After serving in Congress, Lengthy labored with a agency that distributed the pandemic-era employee-retention tax credit score. That tax credit score program was ultimately shut down in 2023 after then IRS Commissioner Daniel Werfel decided that it was fraudulent.
Democrats have additionally known as for a prison investigation into Lengthy’s connections to different alleged tax credit score loopholes. The lawmakers allege that corporations linked to Lengthy — like White River Power Corp. — duped traders into spending hundreds of thousands of {dollars} to buy pretend tax credit. A consultant from White River didn’t reply to an Related Press request for remark.
Democratic lawmakers have additionally written to Lengthy and his related corporations detailing considerations with what they name unusually timed contributions made to Lengthy’s defunct 2022 Senate marketing campaign committee shortly after he was nominated to function IRS commissioner by Trump.
“Bottom line, the American people have the right to know whether the future IRS commissioner is a crook,” mentioned Sen. Ron Wyden, D-Ore.
Republicans, nevertheless, have been open to supporting Lengthy. Committee Chair Sen. Mike Crapo of Idaho mentioned he was assured Lengthy “will be fully transparent to Congress and the American people.”
Lengthy pointed to his work in Congress as related expertise to function IRS commissioner.
“By being familiar with the workings of Congress,” he mentioned, “we could have a complete understanding of Congress’ intent.”
“I think there’s a lot of wasted brain cells” on the IRS, Lengthy mentioned. He didn’t supply readability on whether or not the Direct File program — the free digital tax return submitting system developed through the Biden administration — needs to be ended. However Lengthy mentioned it will be one of many first applications that come up for dialogue if he’s confirmed.
This story was initially featured on Fortune.com
