IRS Whistleblower Program Improvement Act
What does the IRS Whistleblower Program Improvement Act do?
HR 7959 is a House bill sponsored by Rep. Mike Kelly (R-PA). The IRS Whistleblower Program pays people who report tax fraud — but when the IRS shortchanges their award, whistleblowers currently face a stacked deck in Tax Court: judges can only overrule the IRS if it acted unreasonably. This bill replaces that with full de novo review where courts examine the evidence fresh. It also lets whistleblowers stay anonymous in court, adds interest to awards when the IRS delays notifying them, requires the IRS to publish the top 10 tax avoidance schemes reported by whistleblowers each year, and extends the attorney fee tax deduction to all whistleblower awards.
Did HR 7959 pass? Where it stands
As of July 17, 2026, HR 7959 has passed the House.
Status: Passed House
Latest vote: House Passed 346–10 on April 27, 2026
Outlook: Unlikely
Key provisions
- De Novo Court Review
- Tax Court must now review IRS whistleblower award decisions from scratch — not just for unreasonableness
- Applies to petitions already pending on the date of enactment
- Anonymity and Delays
- Whistleblowers may proceed anonymously in Tax Court unless public interest outweighs harm to them
- Interest accrues on awards when IRS misses its preliminary recommendation deadline
- Fees and Reporting
- Attorney fee deduction extended to discretionary awards — currently limited to mandatory awards only
- IRS annual report must list up to 10 top tax avoidance schemes disclosed by whistleblowers
Last updated June 10, 2026