Washington and the tax community offer differing reactions to Trump's pick for IRS commissioner, Billy Long.

• Billy Long, a former Missouri congressman, will be nominated by President-elect Donald Trump to head the IRS.
• The IRS Commissioner Daniel Werfel may be fired before his term ends in 2027, as permitted by law.
• Responses have been mixed in Washington and the tax community.

Billy Long, a former Missouri congressman, has been appointed by President-elect Donald Trump to head the IRS, sparking differing responses from Washington and the tax sector.

The agency's shift towards a multi-billion-dollar revamp, including improvements in customer service, technology, and a free filing program, could be confirmed by Long's potential impact on enforcement efforts to collect unpaid taxes from wealthy individuals, large corporations, and complex partnerships.

In 2022, Congress approved nearly $80 billion in IRS funding, which has been targeted by Republicans and could be at risk under the Trump administration.

Employers are increasingly offering 401(k) plan matches for workers paying off student loans. Investors should be cautious when donating cryptocurrency to charity. "Dynamic pricing" was a top contender for word of the year.

"Billy, who left Congress, now works as a business and tax advisor, helping small businesses comply with IRS Rules and Regulations. Trump wrote on Truth Social post on Wednesday, "Taxpayers and IRS employees will love having Billy in charge.""

Before serving six terms in the House of Representatives from 2011 to 2023, he long worked as an auctioneer.

The IRS Commissioner Daniel Werfel may be fired by President Trump before his term ends in 2027, as per law. Werfel was appointed by President Biden and has led the agency since 2023.

Long is 'an unconventional pick'

Charles Rettig, the former IRS Commissioner who served under Trump and Biden from 2018 to 2022, stated that he has no knowledge of Long or whether Long and Werfel have discussed the transition.

If Werfel is confirmed, Billy Long will quickly grasp the importance of the IRS and IRS employees to the success of our country, according to CNBC.

Mark Everson, the former IRS Commissioner from 2003 to 2007, characterized Long as an "unconventional choice" in comparison to the experience profiles of his predecessors.

Everson, the current vice chairman at Alliantgroup, stated that Long's years in Congress will provide "credibility up on the Hill with the people who matter, which will be important."

He said that long may be in a better position to argue for the appropriate independence of the agency.

But some Democrats expressed concerns over Trump's nominee.

Former Congressman Billy Long is an unusual pick for this role, as Senate Finance Committee Chair Ron Wyden, D-Ore., stated in a statement on Wednesday.

"The most concerning issue is that Mr. Long left his office and entered the scam-ridden industry related to the Employee Retention Tax Credit," he stated.

The employee retention credit, a pandemic-era tax break meant to aid small businesses affected by shutdowns, has been denied billions of dollars in incorrect filings following pressure from companies to change payroll records to claim the tax break.

The Trump transition team didn't respond to CNBC's request for comment.

On Thursday, Sen. Mike Crapo, R-Idaho, expressed his support for Long as the leader of the Senate Finance Committee.

The IRS has faced numerous issues in recent years, including privacy and security concerns, inefficiencies, and an excessive focus on enforcement, as stated by the agency's head.

Mr. Long's vision for the IRS and safeguarding taxpayers are top priorities for me, and I am eager to learn more about his plans.