On January 16, the Senate Finance Committee held a confirmation hearing for Scott Bessent, President-elect Trump’s nominee for Treasury secretary. During his confirmation hearing, Bessent affirmed his support for the Internal Revenue Service (IRS) Whistleblower Program.
Senator Chuck Grassley (R-IA) brought up the program, noting that he authored the law which established it in 2006 and that since then “it’s brought $6 billion back into the federal treasury.”
“This program could raise billions more if the IRS would use it to its full potential,” Grassley continued. “So I hope I can count on you, if you’re confirmed, to be supportive of this whistleblower program and work to ensure its full use to its full potential.”
“Senator Grassley, we are in complete alignment on this program,” Bessent said in response.
Through the IRS Whistleblower Program, qualified whistleblowers, individuals who voluntarily provide original information that leads to a successful IRS action, are eligible to receive monetary awards of 15-30% of the money collected thanks to their disclosure.
The program, which revolutionized tax enforcement by incentivizing insiders to come forward and disclose hard-to-detect misconduct, has struggled in recent years as delays have grown and payouts to whistleblowers have dropped. While recent administrative reforms have strengthened the program, advocates believe that it has even more potential.
“It is very heartening to hear that the new Treasury Secretary is in complete alignment with Senator Grassley as to the importance of the IRS tax whistleblower award program,” says Dean Zerbe, Senior Policy Analyst at National Whistleblower Center (NWC). “As the new administration looks to make government efficient, the whistleblower program is a key tool to making that happen.”
“As the IRS faces limited resources, making full use of the whistleblower program is vital in ensuring that IRS resources are targeted on those seeking to evade – while at the same time leaving the vast majority of honest taxpayers in peace,” Zerbe continues. “The tax whistleblower program is a win for honest taxpayers and for the Treasury. There is much that the new administration can do to expand and improve the tax whistleblower program – and the comments today by nominee Scott Bessent are a good start.”
“As always, NWC thanks Senator Grassley for his tremendous work as THE advocate for whistleblowers in Congress,” adds NWC Chairman Stephen M. Kohn. “Senator Grassley’s voice is so important in ensuring that the success of whistleblower programs continue with the new administration.
Further Reading:
Advocates Continue to Push for IRS Whistleblower Program Reform