S. 4639 — IRS Whistleblower Program Improvement Act

This section requires the Tax Court to review IRS whistleblower award determinations de novo based on the administrative record at the time of the original determination and any newly discovered or previously unavailable evidence, rather than through an appeal. The change applies to petitions pending on or filed after the date of enactment.

This section exempts awards authorized under section 7623 of the Internal Revenue Code of 1986 from reduction under any sequestration order issued under the Balanced Budget and Emergency Deficit Control Act of 1985. The exemption applies to orders issued after the date of enactment.

This section requires whistleblowers to proceed anonymously before the Tax Court in all proceedings under section 7623 of the Internal Revenue Code, unless the court finds that societal interest in disclosure exceeds the potential harm to the whistleblower. The rule applies to petitions pending on or filed on or after the date of enactment.

This section expands the annual IRS whistleblower report to include a list and descriptions of the top 10 tax avoidance schemes disclosed by whistleblowers. The requirement applies to reports for fiscal years ending after the date of enactment.

This section requires the IRS to pay interest on whistleblower awards under section 7623(b) at the overpayment rate under section 6621(a) if the Secretary has not issued a preliminary award recommendation notice by the applicable date. The applicable date is 12 months after all proceeds are collected and tax liabilities are finalized through expiration of the refund period or agreement. The requirement takes effect 180 days after enactment, with a special rule resetting the applicable date for pending cases.

This section expands the above-the-line deduction for attorney's fees related to whistleblower awards under section 7623 of the Internal Revenue Code to cover all such awards (from only those under subsection (b)). The change applies to taxable years ending after the date of enactment.