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Billy Long, a former Missouri congressman nominated by President-elect Donald Trump to head the Internal Revenue Service, boasts of his tax expertise.
He advertises his certification as a Certified Tax and Business Advisor and has added CTBA to his name on his X profile. The profile encourages people to message him with “save 40% on taxes.”
Mr. Long identifies himself as a certified tax and business advisor. This qualification was created by a small firm where all you have to do is attend a three-day seminar. Credit: X
However, tax professionals told ProPublica they had never heard of the CTBA as a tax professional certification. This designation is offered by Excel Empire, a small Florida company founded just two years ago, and requires only attendance at a three-day seminar. This is in stark contrast to the 150 credit hours and rigorous exams required to become a certified public accountant, the standard qualification for tax accountants.
In most tax litigation cases, only attorneys, certified public accountants, and enrolled agents (federally licensed tax professionals) can represent taxpayers before the IRS.
“Tax advice from someone who is only focused on minimizing the tax liability they have, rather than someone who is focused on both minimizing tax liability and complying with tax laws. “The cost of relying on it can be prohibitively high if you are found to be in violation of the standards,” said Nathan Goldman, an associate professor of accounting at North Carolina State University.
Excel Empire’s 3-day certification course is advertised for up to $30,000. The next session is advertised for $4,997. Matthew Pearson, one of the founders, said on a podcast this summer that about 135 people have earned the CTBA designation. This designation was designed by the company to allow people with no tax knowledge to become advisors.
Nina Olson, a prominent taxpayer advocate, said the modern tax industry has seen a “proliferation of different groups and organizations offering tax advice” and that consumers need to know who is competent. He said there was no way.
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“You may have just taken a very short course and paid a hefty fee for that course so you can put your initials after your name,” said Olson, who served as an IRS taxpayer. ” he said. She currently serves as Executive Director of the Taxpayer Rights Center. The Center is a Washington-based nonprofit organization that promotes fairness in the tax system and access to justice.
Tax experts say Mr. Long’s years of experience as a real estate agent and auctioneer pale in comparison to his deep experience in tax policy and managing people who held those positions before spending more than a dozen years in Congress. , he said. For example, current IRS Commissioner Danny Werfel previously served as Acting IRS Commissioner and held leadership roles at the Office of Management and Budget. He also worked in the private sector as a managing director at Boston Consulting Group.
Mr. Long’s experience in the tax world is more narrowly focused. In the two years since he left Congress, he has used the Employee Retention Credit, a pandemic-era benefit aimed at helping businesses retain employees despite revenue losses and disruptions caused by COVID-19. The company worked to acquire customers from at least two companies that sold the product.
The credit also attracted fraud and ended up on the IRS’s “Worst of the Worst” list of tax frauds. Two Democrats on the Senate Finance Committee announced an investigation into the companies Wednesday, saying Long has “no background in tax preparation or qualifications as a certified public accountant, attorney, or registered agent.”
The credit is worth up to $28,000 per employee, is available for tax years 2020 and 2021, and is widely used by both for-profit businesses and nonprofit organizations across the United States. However, the IRS has raised serious concerns about aggressive promoters forcing ineligible companies to submit questionable claims. Red flags include inflated payroll amounts, billing full quarters without proper qualifications, or citing minor government orders that don’t directly impact business operations.
The IRS announced it has recovered more than $1 billion from companies that voluntarily reported fraudulent charges. And it launched hundreds of criminal investigations to recover what it said could be billions of dollars more.
In a prepared statement in November, Werfel said companies should review their claims and make sure they aren’t being misled by companies touting tax credits.
“They should listen to trusted tax experts, not promoters,” he said.
In a 2023 podcast discussing his work at both companies, Long joked that he had a hat taped to his head with his name in the credits. He said his work promoting tax credits has led some clients to question the advice of their CPAs.
“Hey, this auctioneer, this real estate broker, this former congressman, told me he’d get me $1.2 million back,” he said. “Oh, you’re my CPA. Why didn’t you tell me that?” and the CPA’s response would be something like, “Oh, you’re my CPA, why didn’t you tell me that?” It’s a fake deal. That’s not true. That money must be repaid in full. You will be subject to an audit. ”
But he said the company he worked for had never seen the IRS deny a claim.
There is no evidence that Excel Empire, Long, or the companies he worked for (Lifetime Advisors in Hudson, Wisconsin, and Commerce Terrace Consulting in Springfield, Missouri) were involved in any wrongdoing. In the same 2023 podcast, Long emphasized that he and his colleagues only helped taxpayers who were eligible to benefit.
Neither Long Lifetime Advisors nor Commerce Terrace Consulting responded to requests for comment.
If Mr. Long is confirmed and replaces Mr. Werfel, he would have the power to influence how Americans pay their taxes and how the federal government collects revenue. President Trump has promised to stop IRS “overreach,” but Republicans say they will cut billions of dollars in funding passed under the Biden administration to modernize the IRS and strengthen tax enforcement.
The IRS and Trump’s transition team did not respond to requests for comment.
While serving as a congressman from southwest Missouri, Long pushed legislation to abolish the IRS and establish a national sales tax. Billionaire Elon Musk, an adviser to President Trump, recently asked on the X show whether government agencies’ budgets should be “eliminated.”
Like Mr. Long, members of the Excel Empire believe that accountants prioritize compliance over planning, are too busy during tax season to discuss strategy, and that accountants feel it is their responsibility to save their clients money. This suggests that they do not feel that this is their role. The company’s website claims it has saved taxpayers hundreds of millions of dollars.
Edward Lyon, who is listed as chief tax planner and accountant on the Excel Empire website, says that the seven most expensive words in the English language are “My CPA handles my taxes.” is written on the website.
Ryan elaborated on a podcast last year, saying that accountants “generally follow the rules,” but that when it comes to lawyers, “we’re trained to understand the rules, but we’re not willing to stretch them or bend them.” “They are trained to make mistakes and exploit problems.” Follow the rules and complete the end run. It’s a much more active focus. Still, he has consistently stressed that his company acts “legally, ethically and morally.”
Excel Empire argues on its website that CPAs are not focused on saving clients money and that advisors are better able to identify tax breaks. Credit: Excel Empire
Mr. Pearson, the firm’s co-founder, once described Mr. Lyon on a podcast as “the preeminent and aggressive tax lawyer in this country.” Mr. Ryan and Mr. Pearson declined to comment.
The Ohio Supreme Court suspended Ryan’s law license in 2005 for failing to meet registration and fee requirements on time, but he has yet to have it reinstated. He does not appear to be registered as an investment advisor with the Securities and Exchange Commission.
Despite this, Lyon says he has trained tens of thousands of tax and finance professionals. The author of several books and columns, he claims to be one of the most widely read tax strategists in the country and demands a $15,000 speaking fee and first-class travel arrangements.
Lyon has also developed several tax certification programs. On the Excel Empire website, some officials, including Pearson, use the title Lyon created: Tax Master.
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Appearing on another podcast, Lyon discussed how small businesses can be used as tax shelters. As an example, he asked host Heather Wagenhals (who also holds the CTBA title) if she had a swimming pool at home and recorded her show there.
“Yes,” Wagenhals said. “That’s why I chose this.”
Ryan replied: In-house exercise facilities for employees. ”
“Oh my god!” Wagenhals said.
Lyon added: “That’s actually in the tax code, but no one told me that.”
In another podcast, Pearson boasts that he fired an accountant who asked him for advice on how to use a new Corvette “to avoid paying taxes.”
Olson said that attitude is alarming and that a simple answer could cause problems for taxpayers in an IRS audit or in court. “If someone has a pool in their home, even if the employee is working from home and using it, the court will have to look at the proportion of employee use versus personal use, and the court will “We’re going to look at that very carefully,” she said.
