What's Next For The IRS After Commissioner Billy Long's Departure

Forbes

a day ago

IRS Commissioner Billy Long has been removed from office less than two months after Congress approved his appointment to the position. With the interim appointment of Scott Bessent, the IRS Commissioner has now seen seven different leaders in 2025. This constant turnover highlights the persistent turmoil that the agency has experienced over the past several years. This article summarizes the turmoil and sheds light on what we can expect from the IRS in the years to come.
The Underfunding Of the IRS
According to the Congressional Budget Office, the IRS's funding has steadily declined over recent times. In their 2020 report, the CBO highlights that both the funding provided to the IRS and the number of employees employed by the IRS peaked in 2010. For the most part, the IRS's budget had remained steady over this time, with time value of money considerations resulting in budget declines when measured in real dollars. The CBO specifically estimates a 29% decline in real resources for the IRS over these 10 years.
President Biden's Inflation Reduction Act of 2022 sought to rectify this shortfall. This legislation allocated $79.4 billion to the IRS to enhance enforcement, operations support, business systems modernization, and taxpayer services, according to the Tax Policy Center. This increased funding had a counterintuitive effect on the deficit as the CBO estimated it would have yielded $186 billion in additional revenues over the next 10 years. Put differently, most spending increases contribute to an increase in the deficit. However, because the gap between what taxpayers should pay and what they actually pay is large enough, the CBO estimated that the increase in funding to the IRS would pay for itself several times over, as taxpayers would pay their fair share.
However, many aspects of this funding have since been rescinded through the Fiscal Responsibility Act of 2023 ($1.4 billion) and the Further Consolidated Appropriations Act of 2024 ($20.2 billion). To date, only a small portion of the originally allocated $79.4 billion has been spent, according to the U.S. Treasury Inspector General for Tax Administration, which suggests that the IRS spent a mere $13.8 billion as of March 31, 2025.
Former Commissioner Billy Long And His Stance On Funding The IRS
While Trump selected Long as his nominee to be IRS Commissioner back in 2024, it was not until June 16 that the Senate approved him. During this time, numerous acting IRS Commissioners filled in and took on the role. However, that did not stop people from learning more about this potential nominee and his potential impact on the IRS.
For instance, following Trump's nomination of Long, an extended microscope was placed on Long's track record regarding taxes and his vocalized support (or lack thereof) for the IRS. For instance, ProPublica cited his tax experience as exceptionally limited, pointing out that his only qualification centers around being a Certified Tax & Business Advisor, which ProPublica denounces as a dubious and frivolous designation. Other investigations have highlighted Long's track record of attempting to abolish the IRS during his time as a Representative for the state of Missouri, according to Forbes. Notably, this was not a one-time occurrence as Long co-sponsored bills to repeal the income taxes and abolish the IRS in 2011, 2013, 2015, and 2017.
For these reasons, Long's confirmation was among the most contentious of Trump's second term, as he was only confirmed along party lines by a vote of 53-44. However, the controversy did not stop there. According to Forbes, in his short term, which lasted a mere 53 days, he vocalized support for starting the tax filing season much later than usual, which immediately raised alarms and led the National Association of Enrolled Agents to issue a statement suggesting that this stance was unlikely to come to fruition. Whether it be his unusual stances going into the position or while serving as IRS commissioner, Long was not long for the role.
The Future Of The IRS After Commissioner Long's Firing
Following Long's departure, Scott Bessent will now fill in as Acting IRS Commissioner. Bessent currently serves as the U.S. Secretary of the Treasury, meaning that he is unlikely to be permanently in this role. In turn, Trump will seek an IRS Commissioner to serve in a more permanent capacity, and this person will likely be the eighth leader of the IRS in 2025 alone.
Given this expected upcoming change, the IRS appears to be at a crossroads. On the one hand, the IRS continues to receive and spend funds as part of the Inflation Reduction Act. In fact, even after the rescinded funds, a total of $57.8 billion is allocated to the agency, with $44 billion remaining. According to the Tax Policy Center, the IRS plans to spend these funds with the hope of modernizing its systems to enforce tax laws.
On the other hand, Trump appears to continuously question the integrity and usefulness of the IRS by threatening to dismantle the agency, according to the New York Post, or by proposing and enacting substantial layoffs and exodus of IRS employees and agents, according to Forbes. The Wall Street Journal has even reported that Trump views the IRS as a political agency that has been weaponized to attack opponents.
Should these viewpoints persist, it is possible that the GOP will continue to disorient the agency through various channels. For instance, Congress may pass more bills rescinding additional pieces of the $79.4 billion in funding provided under the Inflation Reduction Act. Conversely, Trump may continue to appoint underqualified individuals to serve as IRS Commissioner, which can be particularly impactful if these individuals share his views on defunding the IRS. Lastly, Trump's regime can continue to incentivize and drive away IRS agents and personnel from working for the agency. This diminished workforce would ultimately result in it being less effective in enforcing tax laws, thereby undermining the IRS's importance.
Regardless of which path persists, the IRS's future is more dismal under the current administration, and the removal of Commissioner Long from his role is another chapter in what appears to be an exercise of control over the agency.