,,ii  #aaeth ,,congress  #ast ,session  
,s4 #gfb  ,,in ,,the ,,senate ,,of ,,the
 ,,united ,,states  ,march #bi1 #bjag   
,mr4 ,grassley 7for himself and ,mr4    
,wyden7 introduced the following bill2  
which was read twice and referred to the
 ,committee on ,finance  ,a ,,bill  ,to 
amend the ,internal ,revenue ,code of   
#aihf to reform provisions relating to  
whistleblowers4  #a4 ,short title ,this 
,act may be cited as the ,,irs          
,whistleblower ,improvements ,act of    
#bjag 4  #b4 ,whistleblower reforms  7a7
 ,modifications to disclosure rules for 
whistleblowers  7#a7 ,in general        
,section #fajc7k7 of the ,internal      
,revenue ,code of #aihf is amended by   
adding at the end the following new     
paragraph3  7#ac7 ,disclosure to        
whistleblowers  7,a7 ,in general ,the   
,secretary may disclose1 to any         
individual providing information        
relating to any purpose described in    
paragraph 7#a7 or 7#b7 of section       
#gfbc7;a71 return information related to

 the investigation of any taxpayer with 
respect to whom the individual has      
provided such information1 but only to  
the extent that such disclosure is      
necessary in obtaining information1     
which is not otherwise reasonably       
available1 with respect to the correct  
determination of tax liability for tax1 
or the amount to be collected with      
respect to the enforcement of any other 
provision of this title4  7,b7 ,updates 
on whistleblower investigations ,the    
,secretary shall disclose to an         
individual providing information        
relating to any purpose described in    
paragraph 7#a7 or 7#b7 of section       
#gfbc7;a7 the following3  7i7 ,not later
 than #cj days after a case for which   
the individual has provided information 
has been referred for an audit or       
examination1 a notice with respect to   
such referral4  7ii7 ,not later than #cj
 days after a taxpayer with respect to  
whom the individual has provided        
information has made a payment of tax   

with respect to tax liability to which  
such information relates1 a notice with 
respect to such payment4  7iii7 ,subject
 to such requirements and conditions as 
are prescribed by the ,secretary1 upon a
 written request by such individual--   
7,i7 information on the status and stage
 of any investigation or action related 
to such information1 and  7,,ii7 in the 
case of a determination of the amount of
 any award under section #gfbc7;b71 the 
reasons for such determination4  ,clause
 7iii7 shall not apply to any           
information if the ,secretary determines
 that disclosure of such information    
would seriously impair ,federal tax     
administration4 ,information described  
in clauses 7i71 7ii71 and 7iii7 may be  
disclosed to a designee of the          
individual providing such information in
 accordance with guidance provided by   
the ,secretary4  4  7#b7 ,conforming    
amendments  7,a7 ,confidentiality of    
information ,section #fajc7;a77#c7 of   
such ,code is amended by striking       

subsection 7k77#aj7 and inserting       
paragraph 7#aj7 or 7#ac7 of subsection  
7k74  7,b7 ,penalty for unauthorized    
disclosure ,section #gbac7;a77#b7 of    
such ,code is amended by striking       
7k77#aj7 and inserting 7k77#aj7 or      
7#ac74  7,c7 ,coordination with         
authority to disclose for investigative 
purposes ,section #fajc7k77#f7 of such  
,code is amended by adding at the end   
the following new sentence3 ,this       
paragraph shall not apply to any        
disclosure to an individual providing   
information relating to any purpose     
described in paragraph 7#a7 or 7#b7 of  
section #gfbc7;a7 which is made under   
paragraph 7#ac77;,a744  7b7 ,protection 
against retaliation ,section #gfbc of   
the ,internal ,revenue ,code of #aihf is
 amended by adding at the end the       
following new subsection3  7c7 ,civil   
action ,to protect against retaliation  
cases  7#a7 ,anti-retaliation           
whistleblower protection for employees  
,no employer or any officer1 employee1  

contractor1 subcontractor1 or agent of  
such employer may discharge1 demote1    
suspend1 threaten1 harass1 or in any    
other manner discriminate against an    
employee in the terms and conditions of 
employment 7including through an act in 
the ordinary course of such employee's  
duties7 in reprisal for any lawful act  
done by the employee--  7,a7 to provide 
information1 cause information to be    
provided1 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 fraud1 when the         
information or assistance is provided to
 the ,internal ,revenue ,service1 the   
,secretary of the ,treasury1 the        
,treasury ,inspector ,general for ,tax  
,administration1 the ,comptroller       
,general of the ,united ,states1 the    
,department of ,justice1 the ,united    
,states ,congress1 a person with        

supervisory authority over the employee1
 or any other person working for the    
employer who has the authority to       
investigate1 discover1 or terminate     
misconduct1 or  7,b7 to testify1        
participate in1 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 fraud4     
7#b7 ,enforcement action  7,a7 ,in      
general ,a person who alleges discharge 
or other reprisal by any person in      
violation of paragraph 7#a7 may seek    
relief under paragraph 7#c7 by--  7i7   
filing a complaint with the ,secretary  
of ,labor1 or  7ii7 if the ,secretary of
 ,labor has not issued a final decision 
within #ahj days of the filing of the   
complaint and there is no showing that  
such delay is due to the bad faith of   
the claimant1 bringing an action at law 
or equity for de novo review in the     

appropriate district court of the       
,united ,states1 which shall have       
jurisdiction over such an action without
 regard to the amount in controversy4   
7,b7 ,procedure  7i7 ,in general ,an    
action under subparagraph 7,a77ii7 shall
 be governed under the rules and        
procedures set forth in section         
#dbaba7;b7 of title #di1 ,united ,states
 ,code4  7ii7 ,exception ,notification  
made under section #dbaba7;b77#a7 of    
title #di1 ,united ,states ,code1 shall 
be made to the person named in the      
complaint and to the employer4  7iii7   
,burdens of proof ,an action brought    
under subparagraph 7,a77ii7 shall be    
governed by the legal burdens of proof  
set forth in section #dbaba7;b7 of title
 #di1 ,united ,states ,code1 except that
 in applying such section--  7,i7       
behavior described in paragraph 7#a7    
shall be substituted for behavior       
described in paragraphs 7#a7 through    
7#d7 of subsection 7a7 each place it    
appears in paragraph 7#b77;,b7 thereof1 

and  7,,ii7 a violation of paragraph    
7#a7 shall be substituted for a         
violation of subsection 7a7 each place  
it appears4  7iv7 ,statute of           
limitations ,a complaint under          
subparagraph 7,a77i7 shall be filed not 
later than #ahj days after the date on  
which the violation occurs4  7v7 ,jury  
trial ,a party to an action brought     
under subparagraph 7,a77ii7 shall be    
entitled to trial by jury4  7#c7        
,remedies  7,a7 ,in general ,an employee
 prevailing in any action under         
paragraph 7#b77;,a7 shall be entitled to
 all relief necessary to make the       
employee whole4  7,b7 ,compensatory     
damages ,relief for any action under    
subparagraph 7,a7 shall include-- 7i7   
reinstatement with the same seniority   
status that the employee would have had1
 but for the reprisal1  7ii7 the sum of 
#bjj percent of the amount of back pay  
and #ajj percent of all lost benefits1  
with interest1 and  7iii7 compensation  
for any special damages sustained as a  

result of the reprisal1 including       
litigation costs1 expert witness fees1  
and reasonable attorney fees4  7#d7     
,rights retained by employee ,nothing in
 this section shall be deemed to        
diminish the rights1 privileges1 or     
remedies of any employee under any      
,federal or ,state law1 or under any    
collective bargaining agreement4  7#e7  
,nonenforceability of certain provisions
 waiving rights and remedies or         
requiring arbitration of disputes  7,a7 
,waiver of rights and remedies ,the     
rights and remedies provided for in this
 subsection may not be waived by any    
agreement1 policy form1 or condition of 
employment1 including by a predispute   
arbitration agreement4  7,b7 ,predispute
 arbitration agreements ,no predispute  
arbitration agreement shall be valid or 
enforceable1 if the agreement requires  
arbitration of a dispute arising under  
this subsection4  4  7c7 ,effective date
  7#a7 ,in general ,the amendments made 
by subsection 7a7 shall apply to        

disclosures made after the date of the  
enactment of this ,act4  7#b7 ,civil    
protection ,the amendment made by       
subsection 7b7 shall take effect on the 
date of the enactment of this ,act4