Grassley Questions Treasury Nominees on IRS Whistleblower Program, Need for Timely Guidance on Clean Fuels Credit Implementation

Grassley Questions Treasury Nominees on IRS Whistleblower Program, Need for Timely Guidance on Clean Fuels Credit Implementation

WASHINGTON - Sen. Chuck Grassley (R-Iowa), a senior member and former chairman of the Senate Finance Committee, questioned President Trump's nominee for Chief Counsel of the Internal Revenue Service (IRS), Donald Korb, at a nominations hearing today.

Grassley discussed the importance of the IRS Whistleblower Program with Korb and raised concerns regarding long processing times for award announcements (currently 10 years).

Grassley also questioned Korb and Deputy Under Secretary of the Treasury nominee Jonathan Greenstein about the administration's timeline for implementation of the Clean Fuels Credit under 45Z. In his response, Korb committed to working closely with the IRS Office of Tax Policy to ensure timely guidance is provided on all issues, including the Clean Fuels Credit.

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On support for the IRS Whistleblower Program:

GRASSLEY: In July, we visited about the IRS Whistleblower Program, like what Sen. Wyden was talking about it. As you know, I authored the $7.5 billion dollar [law] that brought that much money back to the Federal Treasury through the Whistleblower Program.

You told me [in July] that your views have evolved, and I take that as fact that you gave me, unless I misinterpreted that because you had spoken against the whistleblower program?

On the need to speed up the Whistleblower Program's long processing times:

GRASSLEY: We're hearing recurring complaints from whistleblowers that the time it takes to process awards [is too long]. The average claim processing time currently exceeds 10 years. One way the IRS Whistleblower Office seeks to speed up awards is through claim disaggregation - where one or more individual actions are separated from a larger claim submission.

This allows at least part of the claim to be paid while other actions may still be ongoing. However, I've heard concerns from the whistleblower community that the IRS Chief Counsel Office recently advised against disaggregation of claims in the case of "related actions."

If confirmed as Chief Counsel, can I count on you to work with the Whistleblower Office to ensure that claim disaggregation can be used by the Whistleblower office to the maximum extent possible under the law?

On the timeline for guidance on the Clean Fuels Credit implementation:

GRASSLEY: The reconciliation bill made several modifications to the Clean Fuels Production Credit under 45Z that will take effect at the start of next year. Implementing this credit properly and quickly is important for the biofuels industry and its participants, and I want to emphasize especially farmers. Recently, the Office of Management and Budget put out a regulatory agenda that suggests regulations won't be implemented until May of 2026. This would be unacceptable.

So, [Mr. Greenstein] you're currently serving as Counselor to Secretary Bessent. What is your understanding of when stakeholders can expect to see guidance implementing the Clean Fuels Credit? Like, tomorrow? Six months from now? Any short answer you can give me.

On stopgap guidance for 45Z:

GRASSLEY: Mr. Korb, while modifications to the Clean Fuels Credit won't go into effect until next year, the credit has been in effect since the start of this year. However, the Biden administration failed to issue formal guidance implementing the credit. As a result, the biofuel industry is operating with great uncertainty as to the value and availability of the credit for 2025, that means the current tax year.

If confirmed, will you commit to providing stopgap guidance clarifying the taxpayer's eligibility to file and claim the credit this year?

KORB: Thank you for the question, Senator Grassley. And, as Chief Counsel, I will work very closely with the Office of Tax Policy in the Treasury Department to make sure that timely guidance is provided on all issues, such as what you've suggested.

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