A bipartisan Senate duo recently introduced companion legislation to a House-passed bill that would make several reforms to an IRS whistleblower program that has recovered billions from noncompliant taxpayers.

“The IRS Whistleblower Awards Program demonstrates the power of whistleblowers. These patriotic men and women are critical to preventing tax dodgers and fraudsters from cheating the American tax system,” said Sen. Chuck Grassley, R-Iowa, the measure’s sponsor, in a statement to Government Executive. “Our bipartisan legislation strengthens protections and support for whistleblowers so this program can keep improving compliance and fairness in our tax system.”

Like its House counterpart (H.R. 7959), the IRS Whistleblower Program Improvement Act (S. 4639) would:

• Modify the standard for reviewing whistleblower award determinations in the U.S. Tax Court in order to allow new evidence to be introduced during appeal.
• Permit whistleblowers to be anonymous before the Tax Court, unless there is a “societal interest” in disclosing their identity.
• Require interest on certain whistleblower payments if the IRS does not meet the deadline to inform the individual of an award recommendation, as part of an effort to ensure the tax agency distributes payments in a timely manner.

In 2025, the IRS reported that it has collected about $7.5 billion as a result of protected disclosures since 2007, leading to more than $1.3 billion in awards to whistleblowers. According to the tax...

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