President Donald Trump’s choice for Internal Revenue Service (IRS) director just had his six-figure debt paid off by campaign donors whose firms have significant, often contentious business before the tax agency he would lead, according to federal records reviewed by the Lever.
The revelations come as lawmakers call for a criminal probe of how tax credits were used by these donors’ firms — many of which have previous ties to US representative Billy Long (R-MO), Trump’s IRS nominee whose confirmation is pending in the Senate.
In new campaign finance filings, Long disclosed an outstanding personal loan of $130,000 that he had made to his failed 2022 US Senate campaign. The dormant Senate campaign committee had raised less than $36,000 in the last two years, which could have forced Long to absorb the losses on the loan.
But after Trump named Long to head the IRS, the committee suddenly raked in nearly $137,000 in less than three weeks in January — money that Long then used to remunerate himself, according to disclosure documents filed this week.
“Making political contributions to aid Billy Long seems like a surefire way to ingratiate yourself with the man poised to lead the IRS, especially when we’re talking about contributions to help repay campaign debt that is just loans to the candidate himself and contributions to his leadership PAC,” said Michael Beckel, the senior research director of the campaign-finance reform organization Issue One, who first spotlighted the donations. “People often criticize campaign contributions for being legalized bribery, but in this case, we’re truly talking about money being given to Long to repay himself.”
In all, more than two-thirds of the contributions that flowed to Long’s committee in January were for $2,900, the maximum allowed for the 2022 election cycle.
At least one-third of the money came from donors working at firms in the tax consultancy industry or involved in major tax-related legal battles.
Numerous Long contributors in his new campaign disclosure report are financial advisors for White River Energy and Lifetime Advisors, among others. Those firms are named in an April 14 letter from Senate Finance Committee members Ron Wyden (D-OR) and Catherine Cortez Masto (D-NV) calling for a criminal investigation into what they allege is a fraudulent tax credit scheme orchestrated by the companies, many of which employ donors that helped retire Long’s debt.
The Senate letter alleges the financial firms “used the identity and image of Native American tribes without their knowledge to dupe investors into spending millions to purchase fake tax credits.”
Soon after leaving Congress in 2023, Long started selling various tax products as a sales agent for Lifetime Advisors. According to his ethics disclosure, Long also received at least $5,000 in income from another firm in the report, White River Energy, as a referral agent specifically for a “Referral to Capitol Edge Strategies.” According to Bloomberg Tax, Capitol Edge Strategies lists tribal tax credits resources on its website.
“We can confirm that these tax credits do not exist,” the IRS told the Senate Finance Committee members. “Taxpayers who claim credits that don’t exist are subject to penalties and possible examination.”
Long’s new campaign finance report showed maximum donations from employees of Nepsis Inc., e3 Family Office, and Lifetime Advisors — all of which the Senate report said pushed the tax scheme.
“Given IRS Commissioner nominee Billy Long’s direct financial ties to White River and other entities implicated in this scheme, we are concerned that if confirmed, Long could undermine enforcement actions related to this fraudulent scheme,” Wyden and Cortez Masto wrote in the April 14 letter.
Other Long donors in January include employees of tax consultancies Tavola Group and Profit Max, as well as a lawyer who recently spearheaded a federal lawsuit against the IRS.
At the end of 2024, Long’s disclosure reports showed he owed $130,000 in debt from a $250,000 loan to his campaign. His new report filed this week revealed he used most of the money reaped in January to pay himself back.
The move came less than three years after the Supreme Court eliminated limits on politicians repaying personal loans with campaign cash from donors with business before those politicians.
Long was formally nominated for the IRS position in January, as cash flooded into his campaign committee. His nomination is still awaiting a Senate vote. Beset by upheaval, the tax agency has cycled through three leaders this year.
Great Job David Sirota & the Team @ Jacobin Source link for sharing this story.
