For potential tax whistleblowers, one of the most pressing questions is whether coming forward will put them at risk. A recent analysis by Dean Zerbe — former Senior Counsel and Tax Counsel to the U.S. Senate Committee on Finance, and a leading tax whistleblower attorney with nearly two decades of experience representing IRS whistleblowers — offers a reassuring answer: the Internal Revenue Service takes whistleblower protection seriously.
In his column in Forbes, Zerbe reflects on a newly released Government Accountability Office (GAO) report, “Protection For Whistleblowers And Others: Selected Agency Actions Regarding Reports of Potential Wrongdoing.“ The report examines how federal agencies safeguard whistleblower confidentiality.
The findings highlight strong confidentiality measures within the IRS Whistleblower Office. According to the report, the office maintains separate claim files for whistleblowers and limits disclosure to a strict “need to know” basis. A whistleblower’s submission is considered protected tax information under Section 6103 of the Internal Revenue Code. This means the IRS will neither confirm nor deny the existence of a whistleblower to a taxpayer under investigation.
Notably, Zerbe points out that, unlike False Claims Act filings, which are made in open court, all IRS whistleblower submissions are handled entirely within the agency, making it extremely difficult for a taxpayer to suspect a whistleblower is involved.
Zerbe also discusses a 2019 amendment to the whistleblower statute that added anti-retaliation protections under Section 7623(d), though Zerbe notes these are rarely needed in practice given how well identity is protected throughout the process.
The IRS program’s track record also continues to grow: since its inception in 2006, the agency has paid out over $1.4 billion in awards tied to more than $7.9 billion in collections from noncompliant taxpayers.
Zerbe’s conclusion is clear: for individuals considering whether to report tax wrongdoing, the IRS system is designed to protect their identity while enabling the government to recover significant unpaid taxes.
Read Dean Zerbe’s full analysis in Forbes: Tax Whistleblower – Is My Identity Safe If I File With The IRS?
