IRS Whistleblower Program Improvement Act

This legislation aims to significantly enhance the effectiveness and fairness of the Internal Revenue Service (IRS) Whistleblower Program. It introduces several key reforms designed to provide greater support and incentives for individuals who report noncompliance with federal tax laws, ultimately streamlining the award process, protecting whistleblowers, and increasing transparency. A major provision grants the Tax Court de novo review authority over whistleblower award determinations, allowing for a fresh examination of evidence and ensuring a more thorough and equitable process. Additionally, the bill exempts whistleblower awards from federal budget sequestration , guaranteeing that awarded amounts are paid in full without automatic reductions. To further protect whistleblowers, the legislation allows them to proceed anonymously before the Tax Court, unless a compelling societal interest for disclosure outweighs potential harm. It also addresses delays in award payments by mandating that interest accrues on awards if the IRS fails to issue a preliminary recommendation within 12 months of certain conditions being met. Finally, the bill requires the IRS's annual whistleblower report to include a list of the top 10 tax avoidance schemes disclosed by whistleblowers, promoting greater public awareness and accountability.