WASHINGTON, D.C. | February 4, 2025 — On January 30, Senators Ron Wyden (D-OR) and Mike Crapo (R-ID) unveiled a discussion draft of a bipartisan bill offering reforms to the Internal Revenue Service (IRS). The bill contains much-needed reforms to the IRS Whistleblower Program.
“The reforms found in this bipartisan bill are desperately needed,” says Stephen M. Kohn, tax whistleblower attorney and Chairman of the Board of National Whistleblower Center (NWC). “They are common-sense reforms which directly address issues plaguing the program, ensuring that tax whistleblowers can continue to root out tax cheats.”
“Tax whistleblowers should be heartened that the new Chairman of the Finance Committee – Senator Crapo (R-ID) – has worked with Ranking Member Wyden (D-OR) on a bipartisan IRS administrative reform bill that brings much-needed changes to the IRS whistleblower program,” adds Dean Zerbe, tax whistleblower attorney and Senior Policy Analyst at NWC. “These changes to the IRS whistleblower program – based on the work of Senator Grassley (R-IA) and Wyden will go far in strengthening and improving the tax whistleblower program.
“Since it was established in 2006, the IRS Whistleblower Program has become an invaluable tool in the IRS’s enforcement arsenal, leading to the collection of over $6 billion,” continues Kohn. “However, over the past several years, issues, such as the 11-years it takes to process award claims, have begun to erode the program’s reputation among would-be-whistleblowers. This bill, combined with the recent efforts of the IRS Whistleblower Office, would get the IRS Whistleblower Program back on track.”
“Especially important is that the reforms include de novo review of whistleblower cases by the Tax Court; exemption from sequestration on awards and interest to run on awards that are improperly delayed,” states Zerbe.
“In addition, the proposed reforms make it easier for the IRS to work closely with whistleblowers while protecting taxpayer information,” Zerbe continues. “As the new administration looks to create greater efficiency of government, it is clear that working closer with whistleblowers is a key way for the IRS to be more effective and better at targeting limited exam resources on those individuals who are evading tax laws while leaving honest taxpayers in peace. This new bill will help achieve those goals.”
Mr. Zerbe and Mr. Kohn are available for comment. For more information, contact NWC at info@whistleblowers.org.
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NWC is the leading nonprofit working with whistleblowers worldwide to fight corruption and protect people and the environment. For over 30 years, NWC has won policies to protect whistleblowers from retaliation and reward them for helping deliver criminal and civil penalties against wrongdoers.
