The IRS should open a criminal investigation into firms that have promoted nonexistent sovereign tribal tax credits, including some with ties to commissioner nominee Billy Long, Senate Finance Committee Democrats said in a letter to the agency.
They added they were concerned that Long, a former Republican House lawmaker from Missouri, would “undermine enforcement actions related to this fraudulent scheme” if confirmed to lead the IRS, and urged a prompt investigation.
Officials at the White House, Treasury Department, and IRS didn’t immediately respond to requests for comment.
The letter cited reporting by Bloomberg Tax on claims by White River Energy Corp., a publicly traded oil and gas company, that it received billions of dollars in tribal tax credits that wealthy investors could buy for as little as 60 cents on the dollar. It claimed to have a joint venture with a tribal entity that gave it access to the credits—though the Cherokee Nation, mentioned in some third-party promotional materials as the tribal partner, disavowed any association and sent White River a cease-and-desist letter.
Treasury told Bloomberg Tax for that article that the credits don’t exist. The IRS affirmed that to the Finance Committee’s Democratic investigators.
“We can confirm that these tax credits do not exist. Taxpayers who claim credits that don’t exist are subject to penalties and possible examination. Furthermore, promoters of these credits may be subject to civil or criminal penalties,” the IRS wrote, according to the letter.
“While it is unclear what role, if any, Billy Long played in promoting the ‘tribal tax credits’ scheme, the prospect that an individual nominated to run the IRS is close business partners with promoters engaged in such a brazen tax scam is deeply disturbing,” the senators wrote.
Long has received income from White River, according to his ethics filings. He said he earned at least $5,000 from White River for a “Referral to Capitol Edge Strategies” and stated his duties at Capitol Edge were as a “referral agent.” Capitol Edge Strategies’ website includes resources explaining the tribal tax credit.
Long received $65,832 from Capitol Edge related to “employee retention credit/financial consulting business,” according to the ethics filing.
The nominee has already faced heat from Senate Finance Democrats for working with Lifetime Advisors and Commerce Terrace Consulting, LLC, to promote the pandemic-era employee retention tax credit, which has been plagued by a high percentage of fraudulent claims.
Long reported $92,065 in income from Commerce Terrace Consulting, his disclosures say.
Long left Congress in 2023 after a failed Senate run. The former auctioneer and radio host didn’t serve on the tax-writing committee, and has a background in real estate.
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