Sen. Elizabeth Warren (D-Mass.) voiced concerns about President-elect Trump’s nominee to lead the Internal Revenue Service (IRS) on Wednesday, pressing him for answers about his previous experience and promotion of a pandemic-era tax credit.
In a letter to Trump’s pick, former Rep. Billy Long (R-Mo.), Warren asked for details about his experience as a “certified business and tax adviser” promoting the controversial employee retention tax credit (ERTC).
“Although you were in Congress for twelve years, and are a successful businessman, your most significant tax experience has been your recent work promoting a fraud-ridden pandemic-era tax credit, which you have incorrectly claimed ‘everybody qualifies’ for,” Warren wrote.
“And a podcast on which you promoted your work on behalf of companies facilitating the credit was recently pulled from the internet — raising questions about whether you or another entity is trying to whitewash your record,” she continued.
Warren noted that despite his promotion of the ERTC, Long is not in the IRS database of tax return preparers or the Missouri Board of Accountancy database.
“While it is apparent that you sold tax advisory services — including by wearing a hat advertising the ERTC — it is not clear what work, if any, you did to help businesses file their ERTC claims with the IRS, how you were compensated for your work promoting the credit, or what guardrails were in place to prevent ERTC fraud,” she added.
Sens. Ron Wyden (D-Ore.), ranking member on the Senate Finance Committee, and Catherine Cortez Masto (D-Nev.) launched an inquiry into Long and his promotion of the ERTC last month.
The credit, which was meant to provide a tax break to companies affected by the pandemic, has been rife with fraud.
IRS Commissioner Danny Werfel, a President Biden appointee, lamented in June that the ERTC program had “turned into a gold rush for promoters,” who have encouraged businesses, sometimes with dubious claims, to apply for the credit and get a slice of the payout.
House lawmakers voted to eliminate the ERTC program as part of a larger tax bill last February. However, the legislation ran into roadblocks in the Senate. Long reportedly traveled to Washington to convince lawmakers not to slash the program, according to The New York Times.
