03/03/23

US: Grassley, Wyden, Wicker, Cardin Introduce Bipartisan Bill To Strengthen IRS Whistleblower Program.

As published on grassley.senate.gov, Thursday 2 March, 2023.

Sens. Chuck Grassley (R-Iowa), Ron Wyden (D-Ore.), Roger Wicker (R-Ala.) and Ben Cardin (D-Md.) today introduced the IRS Whistleblower Program Improvement Act (S.625) 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 $6 billion from wealthy 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 IRS Whistleblower Awards Program has a proven track record of success in preventing tax dodgers and fraudsters from cheating the American tax system. Whistleblowers are essential to this process,” Grassley said. “Our bill will provide improved protection and support for whistleblowers so that this program can continue to encourage cooperation in improving compliance and fairness in our tax system.”

“Whistleblowers play an essential role in helping to identify and root out tax cheating schemes that rip off the American people for huge amounts of money. The numbers show that the IRS whistleblower program works, and my view is the Senate ought to look for every opportunity to improve it,” Wyden said. “It takes real courage to blow the whistle and help put an end to illegal tax cheating schemes, and our bill will go a long way to strengthen protections for the brave Americans who come forward.”

“Congress established the IRS Whistleblower program with the expectation that it would be used to make our existing tax code stronger, but structural problems have kept it from being as effective as it could be,” Wicker said. “This legislation would help protect whistleblowers and expedite claims so they will continue coming forward with crucial information.”

“Everyone must comply with the law. No one likes paying taxes, but they are there for a reason,” Cardin said. “Our legislation aims to improve one of the critical tools the federal government has to collect unpaid taxes. The Internal Revenue Service Whistleblower Award Program, is designed to respond directly to reported instances of tax non-compliance from individuals and corporations. Tax cheats need to know the system works, and whistleblowers need to know they will be protected from repercussions.”

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;
· Exempt whistleblower awards from budget sequestration;
· 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 IRS Whistleblower Program Improvement Act is supported by the National Whistleblower Center and Taxpayers Against Fraud.

"IRS whistleblowers have been in the doghouse for too long. Long delays have discouraged reporting, and whistleblowers have been denied due process in court. These essential amendments are necessary to insure that millionaires and billionaires who fraudulently hide their wealth offshore will pay their fair share of taxes,” said Stephen Kohn, Chairman of the National Whistleblower Center Board of Directors.

“This bill encourages courageous whistleblowers to step forward and expose tax fraud schemes that can often only be uncovered by insiders,” said Jeb White, President of Taxpayers Against Fraud.