IRS informs employees of whistleblower rights after Congressional pressure.

The IRS Clarifies Whistleblower Policy Amid Pressure from Congress

The director of the Internal Revenue Service (IRS) sent a memo to employees on Friday, addressing the agency’s whistleblower policy in response to pressure and investigations from Congress.

In May, it was reported that an IRS whistleblower had made protected disclosures to Congress regarding alleged interference by the Justice Department in the Hunter Biden criminal investigation. However, the initial guidance provided to IRS employees failed to inform them of their right to make disclosures to Congress.

New Guidance on Protected Disclosures

Commissioner Danny Werfel issued an updated memo on Friday, obtained by the Washington Examiner, which included new guidance on making protected disclosures to Congress. The memo emphasized the IRS’s support for a “see something, say something” philosophy and informed employees of their right to raise concerns with independent authorities.

“And in the event that you believe that the best course of action is not to raise issues up your IRS chain of command, but to raise the issue with an independent authority, there are a number of different options for raising concerns, including but not limited to: Treasury Inspector General for Tax Administration (TIGTA), Relevant Oversight Committees of the U.S. Congress, U.S. Office of Special Counsel (OSC), and/or U.S. Department of Justice Office of Inspector General,” the memo reads.

Werfel also provided specific instructions for whistleblowers in different scenarios. For grand jury material, individuals should make protected disclosures to a supervisor, management officials, the DOJ inspector general, and the Treasury Inspector General for Tax Administration. For non-grand jury matters, employees should disclose information to their supervisors, management officials, or the Treasury Inspector General for Tax Administration. Additionally, employees who believe they have faced reprisal for whistleblowing can make disclosures to the Office of Special Counsel.

The memo further states that if IRS employees suspect possible misconduct, maladministration, or taxpayer abuse, they may disclose relevant information to the chairmen of the House Ways and Means Committee, the Senate Finance Committee, and/or the Joint Committee on Taxation.

Werfel emphasized that this new guidance supersedes and replaces the previous guidance emailed by the Deputy Commissioner of Services and Enforcement on May 25, 2023.

An IRS spokesperson did not respond to a request for comment.

Past Failures to Inform Employees

The May 25 email from Deputy Commissioner Doug O’Donnell informed IRS employees of their right to make protected disclosures to supervisors, management, the DOJ Office of the Inspector General, and the Treasury Inspector General for Tax Administration. However, it did not mention their right to make disclosures to Congress.

Similarly, a previous email sent on May 19 by acting special agent in charge Kareem Carter also failed to inform employees of their right to make protected disclosures to Congress. Carter emphasized the importance of following the chain of command and seeking approval from direct reports before discussing case-related activities outside the field office.

Whistleblower Allegations and Retaliation

IRS Whistleblower Gary Shapley and another unnamed whistleblower made protected disclosures to the House Ways and Means Committee, alleging that the DOJ interfered with the Hunter Biden investigation. They claimed that the lead US Attorney on the case was blocked from filing charges, had his request for Special Attorney status rejected, and that information related to a foreign bribery scheme involving Hunter Biden and then Vice-President Joe Biden was concealed. Attorney General Merrick Garland has denied these allegations.

The whistleblowers also provided Congress with text messages showing Hunter Biden using his father’s name to secure business deals in China, resulting in significant financial gains. President Joe Biden has denied any involvement in his son’s business dealings.

After their disclosures to Congress became known, both whistleblowers were removed from the Hunter Biden investigation. Shapley also alleged that he was passed over for a promotion as a result.

Congressional Demands for Investigation

Senior Republicans in Congress demanded that the Office of Special Counsel investigate alleged retaliation against whistleblowers on July 5. In a letter to the head of the OSC, they claimed that the IRS had engaged in unlawful whistleblower retaliation against veteran employees.

The members of Congress called for appropriate disciplinary actions against those involved in unlawful conduct and emphasized the need for accountability within the DOJ and IRS.

Positive Response to Updated Guidance

Following the IRS’s updated guidance on whistleblower protections, Chairman Jason Smith of the House Ways and Means Committee expressed satisfaction. He stated that it is crucial for the IRS to make it clear to employees that they have a constitutional and statutory right to make protected disclosures to Congress.

“The IRS must be clear with its employees that they have a constitutional and statutory right to make protected disclosures to Congress. Period. Full stop,” Smith said.

Click here to read more from the Washington Examiner.

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