Senate Finance Committee Looking to Take White River to the Train Station, Confirms DOJ Investigation into Tribal Tax Credits

On August 19, 2025, the U.S. Senate Committee on Finance (“Senate Finance Committee”) sent Paul Atkins, Chairman, U.S. Securities and Exchange Commission (“SEC”) a letter calling on the SEC to investigate White River Energy Corp (“White River”). In the letter, the Senate Finance Committee confirmed a criminal investigation into White River related to the sale of so-called “tribal tax credits” that according to both Congress and the IRS, do not exist. The letter further states that White River allegedly earned millions of dollars selling these credits and has not been forthcoming with investors regarding the existence of the criminal investigation. According to the Senate Finance Committee, White River has failed to file financial disclosure documents with the SEC since March 15, 2024, missing six consecutive reporting periods. The letter instructs White River to disclose the existence of the DOJ criminal tax investigation, and calls on the SEC to take action if White River fails to do so.

White River in the Spotlight

The call to action stems from the Senate Finance Committee’s recent discovery that the U.S. Department of Justice (“DOJ”) Tax Division opened a criminal investigation into White River for its alleged involvement in the marketing and sale of “tribal tax credits.” White River purportedly acquired tax credits called Native American Income Tax Credits, Sovereign Nation Tax Credits, and Tribal Nations Tax Credits previously issued to a Native American Tribe. White River sold these credits at a discount, claiming investors could use the credits to offset taxable income. White River allegedly made millions selling these tax credits to unsuspecting investors, disclosing in public filings that White River earned at least $24 million in proceeds from these sales. Meanwhile, investors have been left with useless “tax credits,” rejected tax returns, and in some cases penalties from the IRS. Just last month, the IRS updated its Internal Revenue Manual (“IRM”) calling the tax credits a “potential scheme.”

Why the White River Scheme Matters Now

While tribal tax credit schemes are not new, this issue has recently drawn attention because of White River’s relationship to the current administration. Back in December 2024, after President Trump announced Bill Long to be his pick for U.S. Internal Revenue Service (“IRS”) Commissioner, it came to light that Long had promoted the fake tax credit on behalf of White River. Then in January 2025, the Senate Finance Committee launched its own investigation into the validity of the credit. In April 2025, Democratic senators urged the IRS to investigate White River for its alleged involvement in promoting the phony tax credit. The tax credits were also a topic of Long’s Senate confirmation hearing in May 2025. The Finance Committee’s recent request is just the most recent development in a series of events that highlights the dangers of the scheme.

Key Takeaways

Given the strongly worded recent guidance in the IRM calling tribal tax credits a “scheme,” and DOJ’s recent criminal probe into White River, tribal tax credit schemes are likely to remain under the microscope for some time. Potential investors and taxpayers alike should be wary of any purported tribal tax and should consider consulting legal counsel when in doubt. Crowell attorneys are closely monitoring these developments to help clients navigate the evolving tax landscape.