I 
118TH CONGRESS 
1ST SESSION H. R. 1300 
To amend the Internal Revenue Code of 1986 to modify and reform rules 
relating to investigations and whistleblowers, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 1, 2023 
Mr. KELLY of Pennsylvania introduced the following bill; which was referred 
to the Committee on Ways and Means, and in addition to the Committee 
on the Budget, for a period to be subsequently determined by the Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to modify 
and reform rules relating to investigations and whistle-
blowers, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘IRS Whistleblower 
Program Improvement Act of 2023’’. 
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SEC. 2. STANDARD AND SCOPE OF REVIEW OF WHISTLE-
BLOWER AWARD DETERMINATION. 
(a) IN GENERAL.—Paragraph (4) of section 7623(b) 
of the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘appealed to’’ and inserting ‘‘re-
viewed by’’; and 
(2) by adding at the end the following: ‘‘Any re-
view by the Tax Court under the preceding sentence 
shall be de novo and shall be based on the adminis-
trative record established at the time of the original 
determination and any additional newly discovered 
or previously unavailable evidence.’’. 
(b) CONFORMING AMENDMENT.—The heading of 
paragraph (4) of section 7623(b) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘APPEAL’’ and in-
serting ‘‘REVIEW’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to cases under section 7623(b)(4) 
of the Internal Revenue Code of 1986 which are pending 
on, or filed on or after, the date of the enactment of this 
Act. 
SEC. 3. EXEMPTION FROM SEQUESTRATION. 
(a) IN GENERAL.—Section 255 of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (2 
U.S.C. 905) is amended— 
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(1) by redesignating subsection (k) as sub-
section (l); and 
(2) by inserting after subsection (j) the fol-
lowing: 
‘‘(k) AWARDS TO WHISTLEBLOWERS.—An award au-
thorized under section 7623 of the Internal Revenue Code 
of 1986 shall be exempt from reduction under any order 
issued under this part.’’. 
(b) APPLICABILITY.—The amendment made by this 
section shall apply to any sequestration order issued under 
the Balanced Budget and Emergency Deficit Control Act 
of 1985 (2 U.S.C. 900 et seq.) after December 31, 2023. 
SEC. 4. WHISTLEBLOWER PRIVACY PROTECTIONS. 
(a) IN GENERAL.—Paragraph (6) of section 7623(b) 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new subparagraph: 
‘‘(D) WHISTLEBLOWER
ANONYMITY
BE-
FORE THE TAX COURT.—Notwithstanding sec-
tions 7458 and 7461, the Tax Court shall grant 
a whistleblower’s request to proceed anony-
mously before the Court for all proceedings 
under this section absent a finding by the Tax 
Court that a heightened societal interest exists 
for disclosing the whistleblower’s identity, ex-
ceeding the normal interest in knowing a peti-
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tioner’s identity. Should the Tax Court find 
that such a heightened societal interest exists, 
such interest shall be balanced against the po-
tential harm disclosure could cause to the whis-
tleblower.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to petitions filed with the Tax 
Court which are pending on, or filed on or after, the date 
of the enactment of this Act. 
SEC. 5. MODIFICATION OF IRS WHISTLEBLOWER REPORT. 
(a) IN GENERAL.—Section 406(c) of division A of the 
Tax Relief and Health Care Act of 2006 is amended by 
striking ‘‘such use,’’ in paragraph (1) and inserting ‘‘such 
use (which shall include a list and descriptions of the top 
tax avoidance schemes, not to exceed 10, disclosed by 
whistleblowers during such year),’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to reports the due date for which 
are after the enactment of this Act. 
SEC. 6. INTEREST ON WHISTLEBLOWER AWARDS. 
(a) IN GENERAL.—Section 7623(b) of the Internal 
Revenue Code of 1986 is amended by redesignating para-
graphs (5) and (6) as paragraphs (6) and (7), respectively, 
and by inserting after paragraph (4) the following new 
paragraph: 
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‘‘(5) INTEREST.— 
‘‘(A) IN GENERAL.—If the Secretary has 
not provided notice to an individual described in 
paragraph (1) of a preliminary award rec-
ommendation before the applicable date, the 
amount of any award under this subsection 
shall include interest from such date at the 
overpayment rate under section 6621(a). 
‘‘(B) EXCEPTION.—No interest shall ac-
crue under this paragraph after the date on 
which the Secretary provides notice to the indi-
vidual of a preliminary award recommendation. 
‘‘(C) APPLICABLE DATE.—For purposes of 
this paragraph, the applicable date is the date 
that is 12 months after the first date on 
which— 
‘‘(i) all of the proceeds resulting from 
actions subject to the award recommenda-
tion have been collected, and 
‘‘(ii) either— 
‘‘(I) the statutory period for fil-
ing a claim for refund has expired, or 
‘‘(II) the taxpayers subject to the 
actions and the Secretary have agreed 
with finality to the tax or other liabil-
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ities for the periods at issue, and ei-
ther the taxpayers have waived the 
right to file a claim for refund or any 
claim for refund has been resolved.’’. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall take effect 180 days after the date 
of the enactment of this Act. 
(2) SPECIAL RULE.—In the case of a claim for 
a whistleblower award under section 7623(b) of the 
Internal Revenue Code of 1986 with respect to 
which, as of the date described in paragraph (1)— 
(A) the Secretary of the Treasury has not 
provided notice to the individual of a prelimi-
nary award recommendation as described in 
paragraph (5)(A) of such section, as added by 
this Act, and 
(B) the applicable date provided in para-
graph (5)(C) of such section, as so added, has 
passed, 
the applicable date for purposes of such paragraph 
(5)(C) is the date that is 12 months after the date 
described in paragraph (1). 
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SEC. 7. CORRECTION REGARDING DEDUCTIONS FOR AT-
TORNEY’S FEES. 
(a) IN GENERAL.—Section 62(a)(21)(A)(i) of the In-
ternal Revenue Code of 1986 is amended by striking 
‘‘7623(b)’’ and inserting ‘‘7623’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
Æ 
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