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On April 18, 2025, the Internal Revenue Service (IRS) Whistleblower Office debuted its first multi-year operating plan. The plan outlined priorities, guidelines, achievements, and current initiatives to advance the IRS Whistleblower Program.
This is welcome news, as the announcement and recent push for improvement aligns with NWC’s annual legislative priority for updates to the IRS Whistleblower Program. But why is the IRS Whistleblower Program so significant?
In this Sunday Read we will examine what the IRS Whistleblower Program has and can accomplish, as well as the reforms that can strengthen it further.
What Is the IRS Whistleblower Program?
Established in 2006, the IRS Whistleblower Program incentivizes individuals to report specific and credible information about tax non-compliance, fraud, or underpayment of billions of dollars. When such information leads to the collection of taxes, penalties, or interest from non-compliant taxpayers, the whistleblower may be eligible for a monetary award.
In fiscal year 2024, the IRS confirmed it had paid awards totaling approximately $123 million based on tax and other amounts collected of approximately $475 million attributable to whistleblower information. Since its inception, the program has paid more than $1.2 billion in awards and enabled the IRS to recover more than $7 billion in unpaid taxes and penalties.
Eligibility and Award Structure
To qualify for an award under Section 7623(b) of the Internal Revenue Code, a whistleblower must provide original information that substantially contributes to an IRS administrative or judicial action. The key eligibility criteria include:
· The amount in dispute must exceed $2 million.
· If the subject is an individual, their gross income must exceed $200,000 for any taxable year involved.
· Information must be signed and submitted under penalty of perjury.
Eligible whistleblowers can receive between 15% and 30% of the proceeds collected as a result of their disclosure. The percentage may be reduced in cases where the information was already publicly available or if the whistleblower participated in the wrongdoing. Whistleblowers who disagree with the award determination have the right to appeal to the United States Tax Court.
Updates to the Program and Legislation
Despite the overall success of the program, payments have dropped in recent years partially due to long delays and the denial of due process in some cases. These reasons have fueled enthusiasm for reform on Capitol Hill. In March 2023, the IRS Whistleblower Program Improvement Act was introduced by NWC allies like Senators Charles Grassley (R-IA), Ron Wyden (D-OR), Roger Wicker (R-MS) and Ben Cardin (D-MD).
Whistleblower advocates have since called for the passage of the bipartisan act, which would make technical reforms to the struggling program. As of May 2025, the bill has not advanced beyond committee referral.
In 2023, Bloomberg published NWC Chairman of the Board Stephen M. Kohn’s op-ed explaining how key provisions in the bill would return the IRS Whistleblower Program back to maximum effectiveness.
Some of these suggestions are reflected in the new multiyear operating plan, which was developed with extensive input from voices like Kohn’s, as well as whistleblowers, practitioners, IRS employees, oversight bodies, and other stakeholders.
IRS Whistleblower Office Director John Hinman said the plan also “includes both short-term operational planning and longer-term planning for the future of the program.”
Six Strategic Priorities
The operating plan outlines six strategic priorities designed to address longstanding challenges and enhance the program’s effectiveness:
· Enhance the claim submission process for greater efficiency.
· Use high-value whistleblower information effectively.
· Award whistleblowers fairly and as soon as possible.
· Keep whistleblowers informed about the status and outcomes of their claims.
· Safeguard both whistleblower and taxpayer information.
· Support the IRS workforce with effective tools, technology, training, and resources.
Within these priorities, the IRS has identified 38 initiatives targeting short-term improvements and long-term modernization. Key themes include staffing enhancements, improved claim management systems, better data analytics, and increased collaboration with both internal and external stakeholders.
“Of particular interest to the whistleblower community is the IRS’ emphasis on increasing efficiencies to speed up the process and issuing whistleblower awards faster and as soon as possible,” said David Colapinto, NWC founder and general counsel and founding partner of Kohn, Kohn & Colapinto, in April 2025. “To date, the IRS reports that it has collected more than $7.4 billion in taxes attributable to whistleblowers reporting tax fraud and underpayments. The IRS Whistleblower Program has potential to collect even more if it improves its program to encourage more whistleblowers to come forward.”
How You Can Get Involved
Visit the NWC resources to learn more about IRS whistleblower protections and information.
The decision to come forward is not one to be taken lightly, nor should selecting a whistleblower lawyer. NWC provides resources that can connect you with the right legal professional prior to taking any action.
Support NWC
NWC works tirelessly to strengthen whistleblower programs and educate the public about their value. As a 501(c)(3) nonprofit, our work relies on donors like you.
Donate $100 today to help us continue advocating for whistleblowers.
Special Offer: Donors of $50 or more will receive a free copy of Stephen M. Kohn’s latest book, Rules for Whistleblowers: A Handbook for Doing What’s Right.
This story was written by Justin Smulison, a professional writer, podcaster, and event host based in New York.
