In a surprising move, President Donald Trump has decided to replace Internal Revenue Service (IRS) Commissioner Billy Long, just two months after his confirmation to the position. Long, who has been nominated as the new U.S. ambassador to Iceland, made the announcement via social media on Friday afternoon. This transition comes amid significant changes and frustrations within the Treasury Department.
In the interim, Treasury Secretary Scott Bessent will assume the role of acting commissioner, as confirmed by a White House official and another source familiar with the situation, both of whom spoke under the condition of anonymity. It remains unclear when Long will officially step down from his position. The White House has confirmed plans to appoint Long as envoy to Reykjavik.
Long's tenure as commissioner has not been without controversy. According to multiple sources, he implemented several changes that frustrated leaders within the Treasury Department. Notably, he intended to begin the tax filing season around Presidents' Day in February, which is approximately one month behind the usual schedule. Additionally, he had prematurely announced plans to eliminate the IRS’s Direct File program, despite Treasury officials not having made a final decision on the matter.
The decision to push Long out of the IRS was first reported by the New York Times. Long, a former six-term Republican congressman from Missouri, was confirmed to lead the IRS in mid-June. In a break from tradition, President Trump did not permit the former Biden-appointed IRS commissioner, Danny Werfel, to complete his full five-year term. Long now becomes the fifth individual to lead the IRS since Trump began his second term.
Long's time in office was marked by significant challenges. The agency has seen high turnover, including an early acting commissioner who left amid internal disarray due to the administration's cost-cutting efforts led by Elon Musk’s U.S. DOGE Service. Another acting commissioner departed after the agency agreed to provide the Department of Homeland Security with taxpayer information to assist in identifying undocumented immigrants. A third acting commissioner was ousted after only two days due to internal conflicts between Musk and Bessent.
Despite not serving on the tax-writing committee during his time in Congress, Long had significant involvement in tax policy after leaving Capitol Hill in January 2023. He sponsored legislation aimed at eliminating the IRS and faced criticism for accepting payment from an oil and gas company to promote a non-existent tax credit. During his confirmation hearing, Long defended himself against allegations of fraud, expressing his belief that the credit was legitimate.
Despite the leadership turnover at the IRS and a wave of layoffs and voluntary resignations driven by Trump's and Musk’s initiative to reduce government size, officials reported an increase in tax collections this past spring compared to the previous year. Secretary Bessent testified to Congress in June regarding this improvement, highlighting the complexities surrounding the agency's operations during a turbulent period.
