Whistleblower Office

2006 Amendments Establishing the Whistleblower Office

Section 406 of the Tax Relief and Health Care Act of 2006 and Section 7623(b) of the Internal Revenue Code formally amended the IRS Whistleblower program. Under the amendments passed in 2006, a new set of rules and frameworks were established in order to evaluate informant submissions and to improve the efficiency of the program generally. The amended law also required the creation of the Whistleblower Office within 12 months. The Office lies within the IRS and is charged with administering the new framework and handling potential incoming whistleblower claims. President George W. Bush signed the act on December 20, 2006. U.S. Senator Charles Grassley (R-IA), chairman of the Senate Finance Committee, modeled the act creating the Office and its reward system after the False Claims Act, which allows people to file actions against federal contractors committing fraud against the US government. For fiscal year 2006, the Justice Department reported that over $3 billion was collected directly as a result of Whistleblower claims and resulting lawsuits.