HR7959119th CongressWALLET

IRS Whistleblower Program Improvement Act

Sponsored By: Representative Kelly (PA)

Passed House

Summary

Strengthens and speed up the IRS whistleblower program while expanding privacy protections. This bill would tighten review rules for whistleblower awards, let whistleblowers stay anonymous in Tax Court, require new IRS reporting on top tax-avoidance schemes, add interest on delayed awards, and fix a tax deduction cross-reference.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Tax break for whistleblower legal fees

This bill would let people who pay legal fees to get an IRS whistleblower award deduct those fees without itemizing. It would fix a wording error so the deduction covers all IRS whistleblower awards, not just one category. The change would apply to tax years ending after enactment.

Interest on delayed whistleblower awards

If the IRS does not send you a preliminary award notice by the applicable date, your whistleblower award would include interest at the standard IRS overpayment rate. The applicable date is 12 months after two things have happened: all money from the case has been collected, and either the refund-claim period has ended or the tax bills are final and any refund rights are waived or resolved. Interest would stop once the IRS sends the preliminary award notice. This would take effect 180 days after enactment. If, on that 180-day date, you still have no notice and your original applicable date has not yet arrived, the law would reset the applicable date to 12 months after that 180-day date.

Privacy and fresh court review for whistleblowers

This would change how the Tax Court reviews IRS whistleblower award cases and protect your identity. The court would take a fresh look, using the IRS record plus any new evidence that was not available before. You could choose to proceed anonymously, unless the court finds the public interest in naming you is greater than the harm to you. The new review rule would apply to petitions that are pending on, or filed on or after, enactment. The anonymity option would apply to petitions filed on or after enactment.

Sponsors & CoSponsors

Sponsor

Kelly (PA)

PA • R

Cosponsors

  • Thompson (CA)

    CA • D

    Sponsored 3/17/2026

  • Rep. Miller, Carol D. [R-WV-1]

    WV • R

    Sponsored 3/24/2026

  • Buchanan

    FL • R

    Sponsored 3/24/2026

  • Rep. Moran, Nathaniel [R-TX-1]

    TX • R

    Sponsored 3/24/2026

  • Rep. Smith, Adrian [R-NE-3]

    NE • R

    Sponsored 3/24/2026

Roll Call Votes

All Roll Calls

Yes: 346 • No: 10

house vote • 4/27/2026

On Motion to Suspend the Rules and Pass, as Amended

Yes: 346 • No: 10

View on Congress.gov
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