§ 7623.
Expenses of detection of underpayments and fraud, etc.
(a)
In general
The Secretary, under regulations prescribed by the Secretary, is authorized to pay such sums as he deems necessary for—
(1)
detecting underpayments of tax, or
(2)
detecting and bringing to trial and punishment persons guilty of violating the internal revenue laws or conniving at the same,
in cases where such expenses are not otherwise provided for by law. Any amount payable under the preceding sentence shall be paid from the proceeds of amounts collected by reason of the information provided, and any amount so collected shall be available for such payments.
(b)
Awards to whistleblowers
(2)
Award in case of less substantial contribution
(B)
Nonapplication of paragraph where individual is original source of information
(3)
Reduction in or denial of award
(4)
Appeal of award determination
(5)
Application of this subsection
This subsection shall apply with respect to any action—
(A)
against any taxpayer, but in the case of any individual, only if such individual’s gross income exceeds $200,000 for any taxable year subject to such action, and
(B)
if the proceeds in dispute exceed $2,000,000.
(6)
Additional rules
(A)
No contract necessary
(C)
Submission of information
(c)
Proceeds
For purposes of this section, the term “proceeds” includes—
(1)
penalties, interest, additions to tax, and additional amounts provided under the internal revenue laws, and
(2)
any proceeds arising from laws for which the Internal Revenue Service is authorized to administer, enforce, or investigate, including—
(A)
criminal fines and civil forfeitures, and
(B)
violations of reporting requirements.
(d)
Civil action to protect against retaliation cases
(1)
Anti-retaliation whistleblower protection for employees
No employer, or any officer, employee, contractor, subcontractor, or agent of such employer, may discharge, demote, suspend, threaten, harass, or in any other manner discriminate against an employee in the terms and conditions of employment (including through an act in the ordinary course of such employee’s duties) in reprisal for any lawful act done by the employee—
(A)
to provide information, cause information to be provided, or otherwise assist in an investigation regarding underpayment of tax or any conduct which the employee reasonably believes constitutes a violation of the internal revenue laws or any provision of Federal law relating to tax fraud, when the information or assistance is provided to the Internal Revenue Service, the Secretary of the Treasury, the Treasury Inspector General for Tax Administration, the Comptroller General of the United States, the Department of Justice, the United States Congress, a person with supervisory authority over the employee, or any other person working for the employer who has the authority to investigate, discover, or terminate misconduct, or
(B)
to testify, participate in, or otherwise assist in any administrative or judicial action taken by the Internal Revenue Service relating to an alleged underpayment of tax or any violation of the internal revenue laws or any provision of Federal law relating to tax fraud.
(2)
Enforcement action
(A)
In general
A person who alleges discharge or other reprisal by any person in violation of paragraph (1) may seek relief under paragraph (3) by—
(i)
filing a complaint with the Secretary of Labor, or
(ii)
if the Secretary of Labor has not issued a final decision within 180 days of the filing of the complaint and there is no showing that such delay is due to the bad faith of the claimant, bringing an action at law or equity for de novo review in the appropriate district court of the United States, which shall have jurisdiction over such an action without regard to the amount in controversy.
(B)
Procedure
(iii)
Burdens of proof
An action brought under subparagraph (A)(ii) shall be governed by the legal burdens of proof set forth in
section 42121(b) of title 49, United States Code, except that in applying such section—
(I)
“behavior described in paragraph (1)” shall be substituted for “behavior described in paragraphs (1) through (4) of subsection (a)” each place it appears in paragraph (2)(B) thereof, and
(II)
“a violation of paragraph (1)” shall be substituted for “a violation of subsection (a)” each place it appears.
(iv)
Statute of limitations
(3)
Remedies
(B)
Compensatory damages
Relief for any action under subparagraph (A) shall include—
(i)
reinstatement with the same seniority status that the employee would have had, but for the reprisal,
(ii)
the sum of 200 percent of the amount of back pay and 100 percent of all lost benefits, with interest, and
(iii)
compensation for any special damages sustained as a result of the reprisal, including litigation costs, expert witness fees, and reasonable attorney fees.
(4)
Rights retained by employee
(5)
Nonenforceability of certain provisions waiving rights and remedies or requiring arbitration of disputes
(A)
Waiver of rights and remedies
(B)
Predispute arbitration agreements
([Aug. 16, 1954, ch. 736], [68A Stat. 904]; [Pub. L. 94–455, title XIX, § 1906(b)(13)(A)], Oct. 4, 1976, [90 Stat. 1834]; [Pub. L. 104–168, title XII, § 1209(a)], July 30, 1996, [110 Stat. 1473]; [Pub. L. 109–432, div. A, title IV, § 406(a)(1)], Dec. 20, 2006, [120 Stat. 2958]; [Pub. L. 115–123, div. D, title II, § 41108(a)]–(c), Feb. 9, 2018, [132 Stat. 158]; [Pub. L. 116–25, title I, § 1405(b)], July 1, 2019, [133 Stat. 998].)