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Senate Finance Committee presses Billy Long over referrals to promoters of disputed tribal tax credits and campaign donations
Summary
At his Senate Finance Committee hearing, Representative Billy Long faced sustained questioning about referral fees tied to promoters selling tribal tax credits the IRS said were not legitimate, a spike in campaign donations after his nomination, and whether those payments created conflicts if he were confirmed as IRS commissioner.
Representative Billy Long, the president's nominee for commissioner of the Internal Revenue Service, faced repeated questioning before the Senate Finance Committee about his post‑congressional work referring clients to tax promoters who sold so‑called tribal tax credits and about large campaign donations that arrived after his nomination.
The questioning centered on committee findings that Long received $65,000 in referral fees reported as coming from Capital Edge Strategies, that some promoters were tied to White River Energy Corporation, and that roughly $165,000 in contributions to Long's dormant Senate campaign arrived after the White River scheme was reported in the press. Senator Wyden pressed the point directly, quoting the IRS and saying, “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.”
Why it matters: The committee framed the issue as more than a post‑employment business dispute. Senators said the sequence of donations, referrals and public reports raised questions about whether donors expected favorable treatment from the IRS if Long were confirmed. Senator Wyden described a pattern of referrals, promoter fundraising and campaign transfers that he said “just looks corrupt.” Senator Cortez Masto and others echoed concerns and asked whether Long would have conflicts if confirmed.
How the nominee responded: Long told senators his role was limited to referring acquaintances to firms such as Capital Edge Strategies and that he did not provide tax advice. He said, “I referred them to Capital Edge Strategies,” and repeatedly denied direct contact with White River Energy: “I have never met anyone in White River. I don't know anyone at White River.” When asked whether the disputed tribal tax credits were real, Long said he could not answer yes or no and that “the jury's still out,” adding that he wanted an investigation to determine the facts.
On the campaign finances, senators noted that after the December announcement of his nomination a surge of donations flowed into Long's defunct Senate account, and that Long repaid $130,000 to himself to retire a personal loan. Long pointed senators to filings with the Federal Election Commission and told the committee “everything we did was compliant with the Federal Election Commission.”
Committee follow-up: Senators said committee investigators had sought answers from the promoters and from Long's records. Senator Wyden said investigators had obtained recorded calls and donation records and that some promoters had discussed expecting “friends at the IRS” to ease scrutiny. Several senators said they would submit questions for the record and pursue investigations at the IRS and elsewhere if Long were confirmed.
What was not decided: The committee did not adopt a formal finding during the hearing. Long said he would follow any OGE (Office of Government Ethics) controls he signed and that he would cooperate with investigators; senators signaled they would pursue documentary follow‑up and asked for additional records and answers for the record.
