Since it was established in 2006, the Internal Revenue Service (IRS) Whistleblower Program has dramatically bolstered the United States’ efforts to crack-down on tax fraud schemes, identify tax cheats, deter would-be fraudsters and overall shrink the tax gap. In the less than two decades the program has been in operation, it has led to the recovery of over $7 billion while conserving the IRS’s time and resources.
However, in recent years, a number of issues have begun to plague the program, as delays have ballooned while payouts to whistleblowers have shrunk down. These issues threaten to undermine a critical and cost-effective tool in the United States’ anti-tax fraud arsenal by disincentivizing insiders from coming forward and utilizing the program.
Luckily, there has been bipartisan support in Congress for fixing the issues plaguing the IRS Whistleblower Program. The provisions found in the IRS Whistleblower Program Improvement Act, introduced by Senators Chuck Grassley (R-IA) and Ron Wyden (D-OR) during the last session of Congress were included in the draft discussion of the Taxpayer Assistance and Service Act unveiled earlier this year by Senators Wyden and Mike Crapo (R-ID).
These critically needed provisions have not been included in the budget reconciliation bill currently being considered by the Senate, however.
Including the reform provisions of the IRS Whistleblower Program Improvement Act in the budget bill will encourage and increase reporting to the IRS...
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