Combating Tax Fraud

Taxpayer First Act Passed in Success for IRS Whistleblower Program

Under the bipartisan leadership of Sens. Chuck Grassley (R-IA) and Ron Wyden (D-OR), Chairman and Ranking Member of the Senate Committee on Finance, Congress has passed the Taxpayer First Act, which includes important reforms to the Internal Revenue Service (IRS) whistleblower program.

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Reforms Still Needed for IRS Whistleblower Program

While the IRS whistleblower program has been enormously successful, and the recently passed reform law will increase its effectiveness, additional reforms and clarifications in the law are needed. These include clarifying language to provide meaningful judicial review, and incentivizing timely award disbursal.

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The Success of the IRS Whistleblower Program

The IRS whistleblower provisions give monetary rewards to individuals whose contribution leads to sanctions against the tax law violator. If the whistleblower’s information results in a fine or sanction against the tax law violator, the whistleblower receives a percentage of that amount.

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