Chairman Kelly, Ranking Member Thompson Introduce Bill to Strengthen IRS Whistleblower Program

WASHINGTON, D.C.  -- This week, U.S. Reps. Mike Kelly (R-PA), Chairman of the Ways & Means Subcommittee on Tax, Mike Thompson (D-CA), Ranking Member of the Ways & Means Subcommittee on Tax, introduced the IRS Whistleblower Program Improvement Act to make commonsense reforms to the Internal Revenue Service’s (IRS) Whistleblower Awards Program.

The IRS’ whistleblower program has enabled the agency to collect more than $7.5 billion from individuals and businesses caught dodging taxes. It has retrieved additional billions through the Offshore Voluntary Disclosure Program, which was created as a direct result of actionable information brought to the IRS by whistleblowers.

"The legislation ensures fairness and accountability for the hardworking American taxpayer," Rep. Kelly said. "Whistleblowers are essential to ensuring the integrity of our tax laws. Exposing wrongdoing by tax cheats and fraudsters guarantees our voluntary tax system is fair for all Americans."

“A strong whistleblower program helps the IRS recoup taxpayer dollars that were lost to tax fraud or tax evasion,” said Rep. Thompson. “The IRS Whistleblower Program Improvement Act will help the IRS crackdown on tax cheats. By strengthening this vital program, it will provide an incentive to anonymously report incidents of tax fraud and improve the IRS’s compliance and enforcement efforts while deterring those who seek to exploit the system.”

BACKGROUND
The IRS Whistleblower Program Improvement Act includes six measures to bolster the successful program, ensure fairness and protect the whistleblowers who come forward. The legislation would:

• Provide for De Novo review in appeals heard by the U.S. Tax Court, allowing for new evidence to be admitted to the record;
• Establish a presumption of anonymity for whistleblowers before the court;
• Provide that interest be paid to awardees if the whistleblower award has not been paid within one year of the IRS collecting all proceeds;
• Bring the tax treatment of attorney’s fees into line with other whistleblower programs; and
• Improve the program’s annual report to Congress to help tax writers identify areas in most need of attention.

The Kelly-Thompson legislation is supported by the National Whistleblower Center.

You can find the bill text here and a section-by-section here.