# Understanding the IRS Whistleblower Program Improvement Act of 2023

This bill makes several changes to how the IRS handles people who report tax fraud and other financial crimes. Think of it as updating the rulebook for whistleblowers—the people who tip off the government about illegal activity—to make the process fairer and faster for them.

The main improvements focus on giving whistleblowers better protection and compensation. First, if someone challenges their whistleblower award in Tax Court, the court will now do a completely fresh review of the case rather than just checking whether the IRS followed its own rules. This means whistleblowers have a better shot at getting a fair hearing if they disagree with how much money they're being offered. Second, the bill protects whistleblowers' identities in court proceedings, allowing them to remain anonymous unless there's a really compelling public reason to reveal who they are. This is important because whistleblowers often face retaliation or harassment for coming forward.

The bill also addresses the timing problem many whistleblowers face. If the IRS takes too long to make a decision on an award—specifically, if it hasn't notified someone of a preliminary award within 12 months after all the money from the case has been collected, the whistleblower's award will automatically include interest. This compensates them for having to wait. Additionally, whistleblower awards are now protected from government budget cuts, meaning these payments won't be reduced if Congress needs to trim federal spending. Finally, the bill requires the IRS to include information about the top tax avoidance schemes reported by whistleblowers in its annual reports, which helps shine a light on emerging fraud tactics.

IRS Whistleblower Program Improvement Act of 2023

Kelly, Mike

IRS Whistleblower Program Improvement Act of 2023 This bill modifies provisions of the Internal Revenue Code relating to whistleblower protections. Specifically, the bill	 <ul> <li>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); </li> <li>exempts whistleblower awards from reductions due to budget sequestration; </li> <li>allows whistleblowers anonymity in proceedings before the Tax Court;</li> <li>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;</li> <li>requires the IRS to pay interest on whistleblower awards if not paid within one year of receipt of proceeds collected from whistleblower disclosures; and </li> <li>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.</li></ul>