President-elect Donald Trump’s nomination of Billy Long as IRS Commissioner sparks debate over the future of tax policy and IRS operations, including the controversial Direct File program.
At a Glance
- Trump nominates Billy Long, a former Missouri Congressman, as IRS Commissioner
- Republicans urge termination of IRS Direct File program, calling it “unauthorized and wasteful”
- Direct File allows taxpayers to submit simple returns directly to IRS for free
- GOP lawmakers argue IRS acting as both tax preparer and enforcer is a conflict of interest
- IRS plans to expand Direct File program despite opposition
Trump’s Unconventional IRS Commissioner Pick
President-elect Donald Trump has nominated former Missouri Congressman Billy Long as the next IRS Commissioner, a choice that has raised eyebrows and ignited discussions about the future direction of the tax agency. Long, a certified auctioneer with limited tax experience and no college degree, represents an unconventional pick for the role that oversees an agency with 85,000 employees and a $12 billion annual budget.
The nomination comes at a critical time for the IRS, which is facing a $20 billion reduction in special funding and a proposed $2.2 billion budget cut. If confirmed, Long would replace current Commissioner Danny Werfel, whose term is set to end in 2027. The selection has drawn mixed reactions, with some praising Long’s outsider perspective while others question his qualifications for the complex role.
Our Administration is expanding the Direct File program that enables taxpayers to file taxes for free directly with the IRS.
We’re calling on all 50 states and D.C. to join us in saving money for taxpayers across the country by participating in Direct File next year. pic.twitter.com/I2fTcj03bD
— The White House (@WhiteHouse) May 31, 2024
Republican Opposition to IRS Direct File Program
A key point of contention in the evolving IRS landscape is the Direct File program, which allows taxpayers to submit simple tax returns directly to the IRS for free, bypassing third-party providers. Republican representatives are urging President-elect Trump to terminate this initiative, labeling it as “unauthorized and wasteful” and a conflict of interest.
“We’re excited about the improvements to Direct File and the millions more taxpayers who will be eligible to use the service this year.” – IRS Commissioner Danny Werfel
The program, which was utilized by 140,000 Americans in 2024, is set to expand from its initial 12-state pilot to include 12 additional states for the 2025 tax filing season. However, Republican lawmakers argue that the IRS should not serve as both tax preparer and enforcer, viewing it as an overreach of the agency’s role.
Potential Shifts in IRS Focus and Tax Policy
Long’s appointment, if confirmed, could signal significant changes in the IRS’s priorities. There are concerns that the agency’s focus might shift away from enforcing tax compliance among high-income individuals and corporations. Republicans are also expected to push for extending key aspects of the Tax Cuts and Jobs Act (TCJA), including making individual tax cuts permanent and maintaining a lower corporate tax rate.
“If Trump fires Mr. Werfel, it won’t be to improve on his work; it’ll be to install somebody Trump can control as he meddles with the IRS.” – Sen. Ron Wyden (D-Ore.)
The nomination has sparked debate about the future direction of federal tax administration. While supporters of the Direct File program argue it simplifies the tax filing process and saves money for Americans with uncomplicated returns, opponents view it as an unnecessary expansion of government services that could potentially compromise the IRS’s role as an impartial tax collector.
For the 2025 filing season, #IRS Direct File will be available to more than 30 million taxpayers in 24 states and include new features to make filing taxes quicker and easier. Read more here about the expansion of the free e-filing service: https://t.co/Xebx1jK1XY
— IRSnews (@IRSnews) November 12, 2024
Looking Ahead
As the confirmation process for Billy Long’s nomination unfolds, which could take several months, the debate over the IRS’s role and the future of programs like Direct File is likely to intensify. The outcome of this process could have far-reaching implications for how Americans interact with the tax system and the overall approach to federal tax administration in the coming years.
“Above all, our goal is to improve the experience of tax filing itself and help taxpayers meet their obligations quickly and easily. Direct File will be a critical part of achieving that goal as we expand and improve the service.” – IRS Commissioner Danny Werfel
The clash over the Direct File initiative and the potential reshaping of the IRS under new leadership underscore the ongoing debate about the role of government in tax administration. As the situation develops, taxpayers and policymakers alike will be watching closely to see how these changes might affect the tax filing experience and the broader landscape of federal taxation.
Sources:
- IRS Tax Filing Change Proposed Under Donald Trump
- IRS Shakeup? What Trump’s Commissioner Pick Could Mean for Taxes