IRS Whistleblower Program Improvement Act of 2023

IRS Whistleblower Program Improvement Act of 2023

This bill modifies provisions of the Internal Revenue Code relating to whistleblower protections. Specifically, the bill

• revises the standard for review of whistleblower awards in the Tax Court to require a de novo review standard (currently, the standard is abuse of discretion);
• exempts whistleblower awards from reductions due to budget sequestration;
• allows whistleblowers anonymity in proceedings before the Tax Court;
• modifies the Internal Revenue Service (IRS) whistleblower report to require inclusion of a list and description of the top 10 tax avoidance schemes disclosed by whistleblowers;
• requires the IRS to pay interest on whistleblower awards if not paid within one year of receipt of proceeds collected from whistleblower disclosures; and
• allows payment of the attorney fees of whistleblowers regardless of whether the whistleblower award was paid through the mandatory or the discretionary whistleblower award program.

Bill 118 hr 1336, also known as the IRS Whistleblower Program Improvement Act of 2023, aims to enhance the effectiveness of the Internal Revenue Service (IRS) Whistleblower Program. The bill seeks to encourage individuals to report tax fraud and other violations by providing protections and incentives for whistleblowers.

One key provision of the bill is the establishment of a Whistleblower Office within the IRS, which will be responsible for receiving and processing whistleblower claims. This office will also be tasked with ensuring that whistleblowers are treated fairly and that their identities are protected.

Additionally, the bill includes measures to increase the rewards available to whistleblowers who provide valuable information to the IRS. Under the new provisions, whistleblowers may be eligible to receive up to 30% of the proceeds collected by the IRS as a result of their information. Furthermore, the bill includes provisions to streamline the process for submitting whistleblower claims and to improve communication between the IRS and whistleblowers. This is intended to make it easier for individuals to come forward with information about tax fraud and other violations. Overall, the IRS Whistleblower Program Improvement Act of 2023 aims to strengthen the IRS's ability to combat tax fraud and other violations by incentivizing and protecting whistleblowers. The bill seeks to create a more effective and efficient process for reporting and investigating potential violations, ultimately leading to increased compliance with tax laws and greater revenue collection for the government.