What Trump’s Nominee for IRS Commissioner Could Mean for Employee Retention Tax Credit Enforcement

On May 20, 2025, former Missouri congressman, Billy Long, appeared before the Senate Finance Committee for his confirmation hearing as President Donald Trump’s nominee for IRS Commissioner.  Senators questioned Long about his role in promoting questionable tax credits, including Employee Retention Tax Credits (“ERTC”) after leaving the House of Representatives in 2023.  Long also disclosed receiving financial compensation from these entities for his work promoting ERTC.  Given Long’s support for ERTC, there is speculation that the IRS could ease enforcement activity directed towards these credits.

Conflicting Signals

Two recent developments are giving taxpayers and tax practitioners mixed signals about the future of ERTC enforcement. First, in February 2025, the IRS issued its Dirty Dozen list of tax scams, which did not include ERTC. The COVID-era ERTC spawned an entire industry of ERTC promoters attempting to scam taxpayers into improperly seeking this credit.  The scams became so prevalent that the ERTC scam warnings were prominently featured on both the IRS’ 2023 and 2024 Dirty Dozen lists and led to thousands of actions and litigation.  As such, the removal of ERTC scam warnings from the 2025 Dirty Dozen list marks a stark contrast from prior IRS enforcement goals.

Despite what appears to be a priority shift at the IRS, Congress has demonstrated a desire to boost enforcement activity related to ERTCs with the recent passage of “The One, Big Beautiful Bill.”  The current version of the bill contains enforcement provisions related to ERTCs, including enhanced penalties for promoters, reporting ERTC claims as listed transactions, limitations on claims, and extended assessment periods.  Significantly, the proposed bill sets a filing deadline of January 31, 2024, which prevents the IRS from allowing ERTCs claimed by taxpayers on or after that date.  These ERTC enforcement provisions are widely supported by policymakers, especially given the high levels of fraud and abuse associated with these credits, and the provisions are likely to make it into the final bill.  

Implications for Tax Enforcement 

If Long is confirmed as IRS Commissioner, it is unclear whether ERTC-related enforcement will remain a priority. Furthermore, Long’s nomination comes at a tumultuous time for the IRS, which has been undergoing staff reductions and a series of leadership changes.  Long’s confirmation could further signal a potential shift in the IRS’ enforcement priorities, which practitioners and taxpayers alike will be watching closely.