I 
117TH CONGRESS 
1ST SESSION H. R. 4107 
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 
JUNE 23, 2021 
Mr. THOMPSON of California (for himself and 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 Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee 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 2021’’. 
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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, 2020. 
SEC. 4. WHISTLEBLOWER PRIVACY PROTECTIONS. 
(a) IN GENERAL.—Paragraph (4) of section 7623(b) 
of the Internal Revenue Code of 1986, as amended by sec-
tion 2, is further amended— 
(1) by striking ‘‘DETERMINATION.—Any deter-
mination’’ and inserting ‘‘DETERMINATION.— 
‘‘(A) IN
GENERAL.—Any determination’’, 
and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(B) PRESUMPTION OF ANONYMITY.—For 
purposes of Rule 345(a) of the Tax Court Rules 
of Practice and Procedure (as in effect on the 
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date of the enactment of the IRS Whistleblower 
Program Improvement Act of 2021), and any 
successor rule, with respect to any action under 
this paragraph there shall be a rebuttable pre-
sumption that a whistleblower would be subject 
to retaliation, physical harm, social and profes-
sional stigma, or economic distress which out-
weighs the counterbalancing societal interests in 
knowing the whistleblower’s identity.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to petitions filed under Rule 345(a) 
of the Tax Court Rules of Practice and Procedure which 
are pending on, or filed on or after, the date of the enact-
ment 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. 
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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 (5) the following new 
paragraph: 
‘‘(5) INTEREST.— 
‘‘(A) IN GENERAL.—If the Secretary has 
not provided notice to an individual described in 
paragraph (1) of a preliminary award deter-
mination 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 determination. 
‘‘(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 determination 
have been collected, and 
‘‘(ii) either— 
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