What Trump’s plan to replace the current IRS chief could mean for the agency
4 min read
The Internal Revenue Service headquarters building is seen in Washington, DC, on January 10, 2023. Mandel Ngan/AFP/Getty Images
President-elect Donald Trump has named Billy Long, a former Republican congressman from Missouri, to head the Internal Revenue Service, signaling plans to oust current Commissioner Danny Werfel before his term expires in 2027.
Replacing Werfel, who was picked by President Joe Biden, could mean a major shift at the agency, which has been undergoing a massive transformation that’s become a political football in Washington.
Democrats have argued the agency, after facing years of budget cuts, needs more money to go after tax cheats and modernize its technology. And Republicans, many of whom – including Long – have supported shutting down the agency altogether, are skeptical that new enforcement actions won’t unfairly target middle-class Americans.
Last year, Republican lawmakers successfully clawed back $20 billion of the $80 billion provided to the IRS by the Democrat-backed Inflation Reduction Act that passed in 2022.
Further cuts to the IRS’ budget could be a priority for Trump, who has put Elon Musk and Vivek Ramaswamy in charge of a new commission to cut federal spending.
IRS revamp could slow
While the Inflation Reduction Act spells out how much money can be used for enforcement activities and taxpayer assistance, it’s largely up to the IRS, which is housed in the Department of Treasury, to decide how exactly the money is spent.
There are Republicans who have also voiced concern about the effort to ramp up enforcement. Some, including Trump, have misleadingly suggested that the IRS is hiring 87,000 new auditors to target middle-class Americans and small business owners.
But Democrats say the IRS needs the influx of money to successfully go after tax cheats. Prior to the Inflation Reduction Act, the agency did not have the staffing or resources to pursue high-income earners that the agency knew owed taxes, Werfel said earlier this year.
So far, the IRS has collected nearly $1.3 billion in overdue taxes from wealthy households due to the new enforcement efforts.
Less controversial efforts undertaken under Werfel’s leadership have been aimed at making it easier for Americans to file their federal taxes, like hiring thousands more customer service representatives and updating the agency’s archaic technology so that it can digitize paper forms.
The independent Congressional Budget Office and other budget experts say that spending money on tax enforcement can reduce the deficit by bringing in more tax revenue.
Long’s tax experience
Long served 12 years in the House of Representatives from 2011 to 2023. He ran unsuccessfully for a Senate seat in 2022.
During his time in Congress, Long served on the Energy and Commerce Committee, the Homeland Security Committee and the Transportation and Infrastructure Committee – but not on the House’s main tax-writing committee.
He co-sponsored, along with dozens of other Republicans, bills to abolish the IRS and replace the federal income tax system with a national sales tax.
Long currently works as a certified tax and business adviser, according to his X bio. “DM me to save 40% on your taxes. We have a new traunch of tax credits just out!” it says.
“Since leaving Congress, Billy has worked as a Business and Tax advisor, helping Small Businesses navigate the complexities of complying with the IRS Rules and Regulations,” Trump said in a statement Wednesday announcing his pick.
In the private sector, Long has been helping people file for the employee retention tax credit, a pandemic-era benefit. The IRS temporarily paused processing of those claims in 2023 amid concerns of fraud.
In a 2023 podcast interview, Long talked about how he only helps people who are eligible to claim the tax credit.
“If they don’t qualify, we do not tell them they do. And we do not to get them through the process,” he said.
“Taxpayers and the wonderful employees of the IRS will love having Billy at the helm. He is the consummate ‘people person,’ well respected on both sides of the aisle,” Trump said in his statement.
A former professional auctioneer, Long once used his skills to drown out a protester who was disrupting a committee hearing on Capitol Hill.
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