Nominee for IRS Commissioner Faces Questions About Promoting False ERC Claims
Cross References
The nominee to become the new Internal Revenue Commissioner, Billy Long, is being questioned for allegedly promoting “fraud-ridden” Employee Retention Credit (ERC) claims. After service in Congress for twelve years, Long went to work for Commerce Terrace Consulting and Lifetime Advisers where he encouraged people to file for the Employee Retention Tax Credit (ERTC). Lifetime Advisers has since been the subject of several lawsuits. Two accredited accountants reportedly left the company after raising concerns about how the firm prepared taxes.
Long publicly claimed that “everybody qualifies” for the credit and instructed his social media followers to “DM [him] to save 40% on [their] taxes.” Long allegedly bragged that he helped secure a $3.6 million ERTC payout for an organization, only for its chief executive to say that it had ultimately dropped its claim after receiving advice that it may not qualify for the credit. He also allegedly told his listeners to question their accountants.
ERTC processing was temporarily put on hold while the IRS investigated fraudulent claims. Firms known as “ERTC mills” specialized in exploiting the credit’s eligibility criteria, opening the door for fraud and abuse. The IRS provided procedures for businesses to withdraw their ERTC claim penalty free if they believed they did not qualify for the credit.