This article was sent as part of NWC’s “Sunday Read” series which aims to educate supporters about whistleblower stories, legislative or policy initiatives and current events. For more information like this, please join our mailing list.
The House Ways and Means Committee of the U.S. House of Representatives unanimously advanced H.R. 7959, also known as the IRS Whistleblower Program Improvement Act, in March 2026. This vote is an important and welcome step for IRS whistleblowers and sends a clear bipartisan signal that Congress recognizes the need to strengthen the IRS Whistleblower Program and move the bill toward full House consideration.
The IRS Whistleblower Program is a proven, cost-effective tool that has returned more than $7.5 billion to the Treasury by helping the government detect and pursue tax fraud. But it has needed improvements and H.R. 7959 will address long-standing failures that have undermined the IRS Whistleblower Program’s effectiveness for years.
The National Whistleblower Center (NWC) strongly supports this development. In this Sunday Read, we’ll review the Act and the most important details that it will address, should the legislation ultimately be passed into law.
A Brief Review of 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.
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. But in recent years, collections and award payments have slowed significantly. Major reforms to the IRS Whistleblower Program are urgently needed to restore its effectiveness and credibility.
In April 2025, the IRS Whistleblower Office debuted its first multi-year operating plan, which marked a positive step for whistleblower advocacy. The NWC, along with bipartisan Senate leaders, has long championed reforms to address debilitating delays, arbitrary caps, and inconsistent administration of whistleblower awards. Stopping this practice, known as “Repeal by Delay,” was one of the NWC’s seven priority campaigns of 2025.
Why the Recent Vote Matters
The current IRS program often leaves whistleblowers waiting far too long for the awards Congress promised them. As recently reported by Whistleblower Network News, whistleblowers wait an average of 11 years between submitting an award claim and receiving payment, a delay that discourages future disclosures and punishes those who take personal and professional risks to come forward. NWC has warned that these delays amount to “Repeal by Delay” and weaken confidence in the program.
By recommending the bill to the House, the Ways and Means Committee has endorsed the idea that the full chamber should now take up these reforms, moving them closer to being enacted into law.
“This is terrific news for whistleblowers,” said NWC Senior Policy Analyst Dean Zerbe of the recent vote. Zerbe specifically noted that the bill will “ensure that tax whistleblowers get a fair hearing in Tax Court in reviewing IRS award determinations.”
How H.R. 7959 Would Protect Whistleblowers
H.R. 7959 would improve current law by requiring the IRS to pay interest on unnecessarily delayed whistleblower awards, helping ensure that whistleblowers are not financially harmed by government inaction. It would also establish a de novo standard of review for award appeals, allowing the Tax Court to fully examine the facts when deciding whether an award was properly handled.
In addition, the bill would improve confidentiality protections for IRS whistleblowers. That is especially important because protecting identity and sensitive information is central to encouraging insiders to report tax fraud safely and responsibly. These reforms reflect a practical approach: preserve the incentive structure, reduce bureaucratic obstacles, and make the program work as Congress intended.
NWC’s Position
NWC has consistently called for reforms that restore prompt, fair, and reliable treatment of tax whistleblowers.
Alice Wanamaker, a Public Interest Law Fellow at Kohn, Kohn & Colapinto and a law clerk for NWC working on advocacy for the bill, said the Center welcomes the committee’s unanimous support and urges the House to act quickly so these common-sense reforms can become law.
“NWC has argued that rolling, timely award payments are consistent with the original purpose of the program and with fairness to whistleblowers whose information helps the government recover money from tax cheats,” she said.
Wanamaker also noted that the proposed bill does not implement a policy of disaggregation, which would allow awards to be paid on a rolling basis as cases conclude, to speed up the timing of awards. That does not mean, however, that timeliness of award payments was not addressed. Wanamaker explained that the bill “takes an even bigger step to make sure award payments are timely, which was the problem with disaggregation.”
“The most important parts of the bill require the IRS to pay interest on unjustly delayed awards, which will be a huge incentive to make prompt payments,” Wanamaker said. She noted that some administrative issues like the inclusion of whistleblower awards in budget sequestration and placement of an administrative cap on the amount of certain older awards will not be addressed in the Act.
“But despite these minor difficulties,” she added, “the bill as a whole will greatly improve the IRS whistleblower program and allow the IRS to incentivize whistleblower disclosures much more effectively than it has in recent years.”
Looking Ahead
The path forward now depends on continued bipartisan momentum in the House and, ultimately, Senate action and presidential approval before the bill can be signed into law. But this vote marks genuine progress. It moves the IRS Whistleblower Program closer to the kind of system that rewards courage, strengthens enforcement, and protects the public.
“The IRS Whistleblower Program has been one of the government’s most powerful tools for combatting financial fraud in the past two decades,” Wanamaker said. “It’s gratifying to see bipartisan recognition of the need to restore the program to its former strength. The House Ways and Means Committee has done its part, and the full House should now follow through.”
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 is the selection of 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 $100 or more will receive a free copy of NWC Chairman 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.