Does the IRS protect whistleblowers from retaliation?

Yes. Federal tax law prohibits an employer from discriminating in any way against an employee who investigates or reports potential tax violations.

Anyone who suffers retaliation may file a complaint reporting the retaliation to the Secretary of Labor. If the Secretary has not issued a final decision within 180 days, the person claiming retaliation may sue their employer in federal court. Any arbitration provision that would otherwise apply is deemed invalid.

Anyone who prevails on a retaliation claim is entitled to “all relief necessary” to make them whole, including reinstatement, twice the amount of back pay owed with interest, and compensation for any special damages suffered, such as litigation costs and attorney fees.

Protections against retaliation are available even if the person purported to waive the right to file a lawsuit or agreed to arbitrate any dispute arising with an employer under a prior agreement or employment contract.

To learn more about the IRS’s whistleblower program and other programs, go to www.mololamken.com and follow us on LinkedIn. “Brilliant lawyers with courtroom savvy” — Benchmark Litigation. Copyright MoloLamken LLP 2025.