On April 28th, the House passed the bipartisan IRS Whistleblower Program Improvement Act by a 346-10 vote, marking major progress in cementing the protections into law.
The IRS Whistleblower Program mandates that whistleblowers who submit original information to the IRS that leads to a successful enforcement receive an award of between 15% and 30% of the sanctions collected by the government. Whistleblowers have contributed to the federal government recovering over $7.5 billion from tax fraud cases since the program’s inception. However, they have faced significant delays in receiving these mandated awards.
“This is a major victory for all whistleblowers,” said Stephen M. Kohn, Chairman of the National Whistleblower Center (NWC). “The overwhelming bipartisan support sends a powerful and positive message that whistleblowers are crucial to maintaining a fair and honest tax system. All eyes are now on the Senate.”
The IRS Whistleblower Program Improvement Act, introduced by Representatives Mike Kelly (R-PA) and Mike Thompson (D-CA), aims to directly benefit whistleblowers by requiring the IRS to pay interest on overdue award payments. The bill would also empower the Tax Court to review appeals of awards and strengthen confidentiality protections for whistleblowers.
Dean Zerbe, Senior Policy Analyst for the NWC, said, “Tax whistleblowers should be heartened by the Congressional support for the tax whistleblower program. Special thanks to Congressmen Mike Kelly and Mike Thompson for their leadership.”
The bill will now head to the Senate for consideration. The National Whistleblower Center has issued an action alert to the Senate urging for the passage of the bill. Take action to protect whistleblowers and fight tax fraud by writing to your Senator here.