Des Moines Sun

At a Senate Finance Committee nominations hearing, Senator Chuck Grassley (R-Iowa) questioned President Trump’s nominee for Chief Counsel of the Internal Revenue Service (IRS), Donald Korb, and Deputy Under Secretary of the Treasury nominee Jonathan Greenstein. The focus was on the IRS Whistleblower Program and the timeline for guidance on implementing the Clean Fuels Credit under section 45Z.

Grassley raised concerns about delays in processing awards through the IRS Whistleblower Program, noting that average claim times now exceed 10 years. He referenced his role as author of legislation that has returned $7.5 billion to the federal treasury via whistleblowers.

“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,” Grassley said. “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?”

Grassley also highlighted complaints from whistleblowers regarding long wait times for award payments and discussed claim disaggregation—a process by which parts of larger claims are paid out sooner if possible. He noted concerns from whistleblowers over recent advice from the IRS Chief Counsel Office against disaggregation in cases involving related actions.

“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,” Grassley stated. “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?”

The senator then turned attention to implementation of changes in clean fuels tax credits affecting biofuel producers and farmers. Grassley pointed out that although modifications to these credits take effect next year, current lack of formal guidance has led to uncertainty in determining credit value and availability for this tax year.

“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,” he said. “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.”

Grassley asked Greenstein when stakeholders could expect guidance on clean fuels credits: “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.”

He also pressed Korb on whether he would commit to providing interim guidance so taxpayers could determine eligibility for this year’s credits: “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...the Biden administration failed to issue formal guidance implementing the credit...If confirmed, will you commit to providing stopgap guidance clarifying taxpayer’s eligibility to file and claim this credit this year?”

Korb responded: “Thank you for your 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.”