IRS Whistleblower Office Releases First-Ever Multi-Year Plan to Boost Tax Enforcement

The IRS Whistleblower Office has launched its inaugural multi-year strategic operating plan, signaling a significant step toward strengthening the agency’s ability to identify and address tax noncompliance through insider tips and public collaboration.

This plan reflects the IRS’s intent to modernize enforcement, improve response times, and increase payout efficiency for whistleblowers who report individuals or businesses suspected of evading taxes.

For tax professionals, compliance officers, and business owners, understanding how this plan works—and how it may affect enforcement trends—is essential.

What Is the IRS Whistleblower Program?

The Whistleblower Program offers financial rewards to individuals who report significant tax underpayments or fraud. If the IRS acts on a tip and collects more than $2 million (including penalties and interest), the whistleblower may receive 15% to 30% of the collected amount.

Since its establishment in 2006, the program has resulted in billions in collected revenue, but it has also faced criticism for delays, lack of transparency, and administrative bottlenecks.

Key Features of the 2025 Multi-Year Operating Plan

The new plan outlines several strategic priorities aimed at increasing efficiency, fairness, and collaboration:

1. Accelerated Claim Review ProcessThe IRS aims to shorten the time it takes to process whistleblower claims—some of which have historically taken years to resolve.

2. Improved Stakeholder CommunicationGreater transparency in how cases are handled and decisions are made, including more regular status updates to claimants.

3. Stronger Data Protection ProtocolsEnhanced safeguards to ensure whistleblowers remain anonymous and protected from retaliation.

4. Integrated Collaboration with Other IRS DivisionsThe Whistleblower Office will work more closely with enforcement and legal units to expedite credible investigations and improve data sharing.

5. Public Engagement and EducationThe IRS plans to expand its outreach and provide clearer guidance on what constitutes a viable whistleblower claim.

   
   

Why This Matters for Businesses and Tax Professionals

The updated plan is expected to reinvigorate the IRS’s use of whistleblower data as a tool for tax enforcement—particularly in areas like:

• Offshore account reporting

• High-income underreporting

• Complex corporate tax shelters

• Cryptocurrency and digital asset noncompliance

Businesses must be vigilant about their tax practices, internal controls, and documentation. CPAs and compliance teams should be aware of the types of conduct that may now be under more aggressive scrutiny.

How Bizora Helps with Tax Risk Management

At Bizora, we help businesses and advisors stay ahead of regulatory changes, including:

• Tax compliance reviews and risk assessments

• Process audits to minimize vulnerabilities

• Strategic advisory for financial and operational transparency

  
  

Whether you're preparing for a routine audit or addressing whistleblower-sensitive areas like compensation or international filings, our platform provides clarity and actionable insight.

Tax Enforcement Is Evolving—Is Your Business Prepared?

With a more aggressive and organized whistleblower strategy, the IRS is signaling that tip-based enforcement will play a growing role in tax compliance.

Visit bizora.ai for guidance on staying audit-ready, reducing compliance risks, and navigating IRS policy updates with confidence.