U.S. Reps. Mike Kelly (R-PA) and Mike Thompson (D-CA) introduced legislation recently that would make reforms to the Internal Revenue Service’s (IRS) Whistleblower Awards Program.
The legislation, the IRS Whistleblower Program Improvement Act, would bolster the success of the whistleblower program which lawmakers said has enabled the agency to collect more than $7.5 billion from individuals and businesses caught dodging taxes. Six measures within the legislation will ensure fairness while protecting whistleblowers, the Congressmen said.
“The legislation ensures fairness and accountability for the hardworking American taxpayer,” Kelly, chair of the Ways & Means Subcommittee on Tax, said. “Whistleblowers are essential to ensuring the integrity of our tax laws. Exposing wrongdoing by tax cheats and fraudsters guarantees our voluntary tax system is fair for all Americans.”
The legislation would provide for De Novo review in appeals heard by the U.S. Tax Court to allow new evidence to be admitted to the record, and establish a presumption of anonymity for whistleblowers before the court. Additionally, the legislation would provide that interest be paid to awardees if the whistleblower award has not been paid within one year of the IRS collecting all proceeds; to bring the tax treatment of attorney’s fees into line with other whistleblower programs, and to improve the program’s report to Congress.
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