Acting Commissioner Faulkender Steps In Amid Questions Over Long’s Financial Disclosures
Billy Long, President Trump’s nominee to lead the Internal Revenue Service (IRS), is under increased scrutiny following disclosures that he used recent campaign donations to repay a personal loan from his unsuccessful 2022 Senate campaign.
A mid-April filing with the Federal Election Commission (FEC) revealed Long reimbursed himself $130,000 using campaign funds. This repayment occurred after his campaign committee received nearly $137,000 in donations following Trump’s announcement of Long’s IRS nomination in December 2024.
These revelations have prompted concern among campaign finance watchdogs and lawmakers, raising questions about potential conflicts of interest and the motivations of donors.
Ethical Questions Raised by Campaign Repayments
Long’s campaign debt originated from a $250,000 personal loan he used to finance his 2022 Missouri Senate race, which he lost. By the end of 2024, $130,000 of this loan remained outstanding. The recent FEC report confirms that nearly all of the campaign’s post-nomination donations were used to settle this debt.
Critics argue that the timing of these donations, occurring shortly after Long’s IRS nomination, raises ethical red flags. They point to the possibility that donors, some linked to companies currently under federal investigation, may be attempting to gain favor with a potential future IRS commissioner.
While current laws permit candidates to repay personal loans with campaign funds, recent Supreme Court rulings have eased previous restrictions, increasing the potential for perceived or actual ethical lapses.
Connections to Tax Credit Fraud Investigations
Further complicating matters, several donors to Long’s campaign have connections to companies identified in a recent Senate Finance Committee letter to the IRS. These companies, including White River Energy and Lifetime Advisors, are accused of promoting fraudulent “tribal tax credits”—schemes that the IRS has labeled as entirely fictitious and potentially criminal.
The Senate letter warned that promoters of these fake credits could face both civil and criminal penalties. Given Long’s past role as a referral agent for White River Energy and his involvement in selling tax products through Lifetime Advisors after leaving Congress, concerns have arisen about how he might handle IRS enforcement actions targeting these same entities if his nomination is confirmed.
Leadership Transition at the IRS
While the Senate considers Long’s nomination, the IRS is experiencing significant leadership changes. On April 17, 2025, Treasury Secretary Scott Bessent appointed his deputy, Michael Faulkender, as acting IRS commissioner. This move followed reports of external influence over a previous interim appointment.
Faulkender is the fifth individual to hold the role since Trump’s return to office and the third within a single week, suggesting internal instability. His appointment is viewed as an effort to restore order amid these internal power struggles and increasing external scrutiny.
Faulkender previously oversaw the Paycheck Protection Program during Trump’s first term and is expected to lead the IRS until the Senate confirms a permanent commissioner.
Broader Political Implications
The leadership turmoil at the IRS reflects broader trends in federal oversight and the Trump administration’s stated goal of reforming tax enforcement. President Trump has publicly emphasized efforts to revoke the tax-exempt status of organizations he views as politically biased, placing the IRS at the center of partisan debates.
Recent turnover in IRS leadership, including the resignation of former Commissioner Danny Werfel in January and the controversial departures of his successors, has further highlighted the agency’s instability.
The current scrutiny surrounding Billy Long’s financial disclosures and donor relationships adds another layer of complexity to this leadership transition. As the Senate confirmation process proceeds, questions regarding the independence, ethics, and accountability within the nation’s tax agency remain a central focus.
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