Billy Long’s Confirmation as IRS Commissioner: Implications for Taxpayers
Former Congressman Billy Long, a Republican from Missouri, has been confirmed as the new IRS Commissioner. His appointment, backed by President Donald Trump, has generated mixed reactions, particularly regarding the potential implications for taxpayers as the agency undergoes extensive cuts.
Controversial Confirmation Process
Long’s nomination underwent a rigorous confirmation journey, facing significant scrutiny from Democrats. They raised concerns about his ties to Trump and his involvement with questionable tax credits. Despite this, Senate Republicans secured his confirmation through a party-line vote. In response to queries about maintaining the agency’s neutrality, Long assured senators that he would strive to keep the IRS free from political influence.
During a Senate Finance Committee hearing, Long emphasized a commitment to adhering to laws, especially regarding any potential requests for political favors from Trump. His confirmation process has been described as contentious, leaving many wondering how his leadership will affect taxpayers moving forward.
Urgent IRS Cuts
Long takes office amid major cuts within the IRS, which have been initiated under the Department of Government Efficiency led by Elon Musk. Recent reports by the Treasury Inspector General for Tax Administration (TIGTA) indicate these reductions will greatly impact the IRS’s functionality. Notably, a report highlighted a nearly 30% decrease in revenue agents responsible for audits, raising concerns about the agency’s ability to perform its essential functions.
Addressing the Tax Gap
The “tax gap,” which represents the total taxes owed but not paid on time, is a pressing issue, estimated at $696 billion for the tax year 2022. Long has expressed a desire to enhance the IRS, aiming for an efficient collection of owed taxes. However, the Trump administration’s budget proposal for fiscal year 2026 suggests a 37% cut in IRS funding, including significant reductions in staffing and technology resources. Analysts from the Yale Budget Lab warn that these cuts could adversely affect tax collection efforts.
During a recent House Appropriations subcommittee hearing, U.S. Treasury Secretary Scott Bessent underscored that improving tax collections is among the IRS’s top priorities. He mentioned the potential benefits of advanced technology and artificial intelligence in achieving revenue goals, indicating a push towards modernization despite budget constraints.
Impacts of Proposed Tax Changes
In 2022, Congress approved close to $80 billion to bolster the IRS, focusing on enforcement against corporations and high-net-worth individuals attempting to sidestep their tax obligations. However, these funds are now under scrutiny as Republicans aim to reshape tax regulations through significant legislative changes. For instance, one proposed change mandates pre-certification for each qualifying child before claiming the earned income tax credit, which could pose additional challenges amid ongoing workforce reductions.
As Billy Long steps into his new role, the intersection of agency cuts, budget constraints, and proposed tax changes continues to stir debate among policymakers and taxpayers alike. With pressures mounting, it remains to be seen how his leadership will navigate these complex issues impacting the IRS and its ability to deliver effectively on its mission.
