Ways and Means clears bipartisan reforms for IRS whistleblower program, including anonymous tax‑court review

The committee voted to report H.R. 7959, the IRS Whistleblower Program Improvement Act, after bipartisan discussion about strengthening protections and procedures for individuals who report tax fraud.

Representative Kelly, sponsor of the bill, said whistleblowers have yielded billions in recoveries and that the bill delivers practical updates including meaningful judicial review, a presumption of anonymity in tax‑court proceedings at the whistleblower's election, interest on delayed awards, and improved congressional reporting. Representative Thompson, a co‑author, said the changes aim to make the program more predictable and to prevent whistleblowers from bearing the cost when the government delays action.

Joint Committee staff described the technical changes and estimated a net budgetary effect of about $44 million over FY2026–2036, largely because broader tax‑court review could increase award sizes and because clarifying attorney‑fee deductibility would increase deductions claimed by whistleblowers. Some members cautioned that program improvements do not substitute for broader IRS enforcement capacity, which other members said has been reduced by staffing and resource changes.

After debate and consideration of amendments the committee voted to report H.R. 7959 favorably (recorded vote as announced, 41–0). The measure was ordered favorably reported and staff were authorized to make conforming changes; members were given two days to file supplemental views.