President-elect Donald Trump has nominated former Missouri Rep. Billy Long to head the Internal Revenue Service, touting his tax expertise.
He promoted himself as a certified tax and business advisor and added CTBA to his name in his X profile. The profile encouraged people to message him to “save 40% on tax.”
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But tax experts told ProPublica they had never heard of the CTBA as a credential for tax professionals. The title is offered by Excel Empire, a small Florida company that was founded two years ago and requires only a three-day workshop. This contrasts with the 150 credit hours and rigorous exams required to become a CPA, the standard certification for tax accountants.
In most tax cases, only attorneys, CPAs, and registered agents (federally licensed tax practitioners) can represent taxpayers before the IRS.
“If you are found to be relying on the tax advice of someone who is solely focused on minimizing your tax liability (as opposed to someone who is focused on both minimizing your tax liability and complying with tax laws), then the cost of your tax advice may be It’s a very high violation of the standard,” said Nathan Goldman, associate professor of accounting at North Carolina State University.
Excel Empire’s three-day certification course is advertised for up to $30,000; an upcoming conference is advertised for $4,997. About 135 people have earned the CTBA designation, Matthew Pearson, one of the founders of the company, which helps people without a tax background become advisors, said on a podcast this summer that about 135 people have earned the CTBA designation.
Prominent taxpayer advocate Nina Olson said the modern tax industry has “a proliferation of different groups and entities providing tax advice” and consumers have no way of knowing who is competent.
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“It could just be that you took a very short course and paid a large fee for it that allowed you to put something after your name,” said Olson, a former IRS national taxpayer. Initials. Opportunity.
Tax experts say Long’s years of experience as a real estate agent and auctioneer before serving in Congress for more than a decade pale in comparison to the depth of experience in tax policy or administration that anyone in that position would have. For example, current IRS Commissioner Danny Werfel previously served as acting IRS commissioner and held leadership roles in the Office of Management and Budget. He also worked in the private sector as a managing director at The Boston Consulting Group.
Long’s experience is more focused in the tax area. In the two years since leaving Congress, he has worked to attract clients for at least two companies marketing the Employee Retention Credit, a pandemic-era benefit designed to support those experiencing loss or disruption of income due to COVID-19 Businesses that retain their employees.
The credit also spawned fraud that ended up on the IRS’s “worst” tax scam list. Two Democrats on the Senate Finance Committee announced an investigation into the companies on Wednesday, noting that Long had neither a “tax preparation background nor any qualifications as a CPA, attorney or registered agent.”
The credit, worth up to $28,000 per employee, is available for the 2020 and 2021 tax years and has been widely used by for-profit companies and nonprofits across the country. However, the IRS has serious concerns about aggressive promoters pushing ineligible businesses to file dubious claims. Red flags include inflated payroll numbers, claims for all quarters without proper qualifications, or citing minor government orders that do not directly impact business operations.
The Internal Revenue Service (IRS) says it has recovered more than $1 billion from businesses that voluntarily reported improper returns. The company has also launched hundreds of criminal investigations in an attempt to recoup losses it says could amount to billions of dollars.
In a prepared statement in November, Wayfair said businesses should review their filings to see if they were misled by companies promoting tax credits.
“They should listen to trusted tax professionals, not propagandists,” he said.
During a 2023 podcast discussing his work for both companies, Long joked that he had a hat with the project’s name taped to his head. He said his tax credit marketing efforts have led some clients to question their CPA’s advice.
“Hey, this auctioneer, real estate agent, former congressman told me I’m going to get $1.2 million back,” he said. “Well, you’re my CPA. Why didn’t you tell me? He said the CPA’s response was, ‘That’s a joke. That’s a fake deal. That’s not real. You have to pay back all the money. You’ll be audited.’
But he said the companies he’s worked for have never seen the IRS deny one of their claims.
There is no evidence of wrongdoing by Excel Empire, Long or the companies he worked for, Lifetime Consulting in Hudson, Wisconsin, and Commerce Terrace Consulting in Springfield, Missouri. In the same 2023 podcast, Long emphasized that he and his colleagues only helped taxpayers who were entitled to benefits.
Long, Lifetime Advisors and Commerce Terrace Consulting did not respond to requests for comment.
If Long is nominated and succeeds Wayfair, he will have the ability to influence how Americans pay taxes and how the federal government collects revenue. Trump pledged to end “overreach” by the IRS, while Republicans said they would cut billions of dollars in funding passed by the Biden administration to modernize the IRS and strengthen tax enforcement.
The IRS and the Trump transition team did not respond to requests for comment.
While serving in Congress representing southwest Missouri, Long sought legislation to abolish the Internal Revenue Service and establish a national sales tax. Trump adviser and billionaire Elon Musk recently asked on X whether the agency’s budget should be “removed.”
Like Long, members of Excel Empire said accountants don’t see it as their job to save clients money because they prioritize compliance over planning and are too busy during tax season to discuss strategy. The company’s website claims the company has saved taxpayers hundreds of millions of dollars.
Edward Lyon, who is listed as a chief tax planner and tax attorney on the Excel Empire website, writes on his personal website that the seven most expensive words in the English language are “My CPA handles my taxes”.
Lyon elaborated on this in a podcast last year, noting that accountants are “generally rule followers,” but when it comes to lawyers, “We’re trained to understand the rules, but we’re trained to stretch the rules, bend the rules, and probe the rules ”. rules and make the final run around the rules. This is a more proactive focus. Still, he has always stressed that his company’s actions are “legal and ethical.”
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Pierson, the firm’s co-founder, once described Lyon on a podcast as “the preeminent proactive tax attorney in the country.” Lyon and Pearson declined to comment.
In 2005, the Ohio Supreme Court revoked Lyon’s law license for failing to meet registration and fee requirements on time, and he has yet to regain the license. He also does not appear to be registered as an investment adviser with the SEC.
Still, Lyon said he has trained tens of thousands of tax and financial professionals. The author of several books and a column, he claims to be one of the most widely read tax strategists in the United States and charges $15,000 in speaking fees and top-notch travel arrangements.
Lyon has also developed several tax certification schemes. On the Excel Empire website, some officials, including Pearson, use a title created by Lyon: Tax Master.
Lyon appeared on another podcast to discuss how small businesses can be used as tax shelters. For example, he asked host Heather Wagenhals — who also holds a CTBA title — if the home where she was taping her show had a swimming pool.
“I do,” Wagenhals said. “That’s why I chose this.”
Lyon responded: “Okay, I’m going to rock your world in five words, are you ready? Internal employee athletic facility.
“Oh my God!” Wagenhals said.
“It does exist in the tax code, but no one tells you about it,” Lyons added.
In another podcast, Pearson bragged about firing an accountant who refused his request for advice on how to “dodge taxes” on a new Corvette.
That attitude is troubling, Olson said, and simplistic answers could cause taxpayers problems in IRS audits and in court. “A swimming pool in someone’s home, even if employees work in the home and use it, still requires the courts to consider the percentage of employee use versus personal use – and they look at that very carefully,” she said.
