U.S. House passes Kelly-led IRS Whistleblower Improvement Act
WASHINGTON, D.C. -- On Monday, the U.S. House of Representatives passed the IRS Whistleblower Program Improvement Act, bipartisan legislation introduced by U.S. Representatives Mike Kelly (R-PA), Chairman of the Ways & Means Subcommittee on Tax, and Mike Thompson (D-CA), Ranking Member of the Ways & Means Subcommittee on Tax, to strengthen and modernize the Internal Revenue Service’s (IRS) Whistleblower Awards Program.
The IRS Whistleblower Program Improvement Act now heads to the Senate for consideration.
"Today's vote is a win for the American taxpayer and the American worker," said Rep. Kelly. "Our commonsense, bipartisan legislation ensures the integrity of our Nation's tax laws. When individuals come forward to expose wrongdoing by tax cheats and fraudsters, they help ensure our voluntary tax system remains fair for all Americans. Strengthening this program is a smart way to recover unpaid taxes while improving efficiency and accountability across the system."
“Whistleblowers play a critical role in government oversight – whether it be uncovering bad actors within government or, in the case of the IRS Whistleblower Program, tracking down those in the private sector who are defrauding American taxpayers,” said Ways and Means Committee Chairman Jason Smith (MO-08). “At a time when it appears we need an all-of-the-above approach to combatting fraud across various government programs, improving the IRS Whistleblower program will better protect whistleblowers and appropriately award them for their contributions to stopping tax fraud, tax evasion, and other similar crimes. Ways and Means Tax Subcommittee Chairman Kelly’s IRS Whistleblower Program Improvement Act builds on his long-standing commitment to reform and to combatting the epidemic of fraud we see stealing hard-earned dollars from the American people.”
“Whistleblowers often face uncertainty and long delays. And in some cases, they face real personal and professional risk just for coming forward. We need to be doing everything we can to fix those problems,” said Rep. Thompson. “The IRS Whistleblower Program Improvement Act will support the IRS’s crackdown on tax cheats and protect the brave whistleblowers who are helping to make our tax system more fair. I look forward to continuing my work with Rep. Kelly to get this through the Senate and signed into law.”
BACKGROUND
The IRS whistleblower program has enabled the agency to collect more than $7.5 billion from individuals and businesses caught dodging taxes, while also serving as a powerful deterrent against sophisticated tax evasion schemes. The IRS Whistleblower Program Improvement Act reinforces and modernizes the program by improving the appeals process, protecting whistleblower anonymity, encouraging timely award payments, and strengthening oversight and reporting to Congress.
These reforms aim to keep the program focused, predictable, and effective, ensuring a fair shake for taxpayers while maximizing the return on enforcement efforts without expanding broad-based audits.