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IRS Whistleblower Program Has Recovered More Than $8 Billion and Paid Over $1.4 Billion in Awards Since 2007

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IRS Whistleblower Program
The IRS says its Whistleblower Program has recovered more than $8 billion in unpaid taxes and related penalties while awarding more than $1.4 billion to eligible whistleblowers since 2007. II.studio/Shutterstock

The Internal Revenue Service is recognizing National Whistleblower Day by highlighting the success of its Whistleblower Program, which has helped recover more than $8 billion in taxes, penalties, and other amounts since the program began in 2007. During that same period, the IRS has paid more than $1.4 billion in awards to eligible whistleblowers whose information led to successful enforcement actions. National Whistleblower Day is observed annually on July 30, commemorating the nation’s first whistleblower protection law enacted in 1778.

How the IRS Whistleblower Program Works

The IRS Whistleblower Office accepts information from individuals with knowledge of significant tax noncompliance. In qualifying cases, whistleblowers may receive a financial award based on the amount the IRS ultimately collects as a result of the information they provide. The program is generally intended for substantial tax violations involving large unpaid tax liabilities rather than routine filing mistakes or minor errors. IRS officials say whistleblower tips continue to play an important role in identifying tax fraud and helping close the nation’s tax gap.

Program Focuses on Significant Tax Fraud Cases

According to the IRS, information submitted through the Whistleblower Program helps investigators uncover tax noncompliance that might otherwise go undetected. Agency officials say the program promotes fairness by helping ensure individuals and businesses that fail to meet their tax obligations are held accountable. People interested in learning more about eligibility requirements, award calculations, or the submission process can review information available through the IRS Whistleblower Office or consult a qualified tax professional.

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IRS Issues Correction to Updated Qualified Domestic Trust Regulations Under Section 2056A

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IRS Issues Correction to Updated Qualified Domestic Trust Regulations Under Section 2056A

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Qualified Domestic Trust regulations
The IRS has issued technical corrections to its recently updated Qualified Domestic Trust regulations, clarifying federal estate tax procedures for trusts benefiting non-U.S. citizen surviving spouses. Tada Images/Shutterstock

The Internal Revenue Service has published a correcting amendment to recently finalized regulations governing Qualified Domestic Trusts (QDTs) under Internal Revenue Code Section 2056A. Published in the Federal Register on July 24, 2026, the amendment makes technical corrections to final regulations issued earlier in the month and became effective immediately upon publication. According to the IRS, the changes are administrative in nature and do not introduce new policy or alter the underlying requirements for Qualified Domestic Trusts.

Correction Updates Technical References, Not Tax Policy

The correcting amendment follows final regulations published on July 10, 2026, which updated outdated references and administrative procedures within the Qualified Domestic Trust regulations. Qualified Domestic Trusts allow certain surviving spouses who are not U.S. citizens to qualify for the federal estate tax marital deduction, provided the trust meets specific federal requirements. The July 24 correction is intended to fix technical errors and ensure the updated regulations accurately reflect current procedures without changing how the rules operate.

Estate Planning Professionals Should Review the Updates

Although the amendment is limited in scope, it may be relevant to estate planning attorneys, tax professionals, trustees, and families with international estate planning considerations involving non-citizen surviving spouses. Individuals with questions about how the updated regulations apply to their specific situation should review the Federal Register publication or consult a qualified tax or legal professional before making estate planning decisions.

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New York Attorney General Urges Congress to Tighten Cryptocurrency Oversight, Warns Proposed Federal Bill Would Weaken State Enforcement

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Letitia James cryptocurrency regulation
New York Attorney General Letitia James testified before Congress that stronger federal cryptocurrency safeguards are needed and warned the proposed Clarity Act could reduce states’ ability to combat crypto fraud. lev radin/Shutterstock

New York Attorney General Letitia James has urged Congress to strengthen federal oversight of cryptocurrency markets, arguing that existing gaps leave consumers vulnerable to fraud and financial losses. In testimony submitted to the Senate Permanent Subcommittee on Investigations, James said cryptocurrency scams have cost Americans billions of dollars and noted that complaints received by her office have tripled over the past three years. The Office of the Attorney General also reported nearly $500 million in cryptocurrency scam losses over the last five years in New York alone.

AG James Warns Clarity Act Could Limit State Enforcement

A central focus of the testimony is the proposed Digital Asset Market Clarity Act (Clarity Act), which would shift much of the oversight of digital assets to the Commodity Futures Trading Commission (CFTC). James argues the legislation would preempt key state enforcement powers, making it more difficult for attorneys general and local law enforcement agencies to investigate cryptocurrency fraud and hold digital asset platforms accountable. The testimony points to several previous enforcement actions by the New York Attorney General’s Office involving cryptocurrency companies as examples of why preserving state authority remains important.

Testimony Also Addresses Transparency and Ethics

Beyond consumer protection, James called on Congress to adopt stronger transparency requirements for cryptocurrency markets and raised concerns about the use of digital assets in money laundering, bribery, campaign finance violations, and other illicit activity. She also urged lawmakers to prohibit elected officials and recently departed government employees from participating in cryptocurrency regulation if they have financial interests in the industry, citing potential conflicts of interest. Consumers with questions about cryptocurrency fraud or investor protections should consult their state attorney general’s office or the appropriate federal regulators for guidance.

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FDIC Publishes 2026 Risk Review Covering Funding, Interest Rate, and Credit Risks Facing Banks

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FDIC 2026 Risk Review
The FDIC’s 2026 Risk Review examines the funding, interest rate, and credit risks that shaped the U.S. banking industry during 2025 while highlighting trends affecting financial institutions and consumers. Tada Images/Shutterstock

The Federal Deposit Insurance Corporation (FDIC) has released its 2026 Risk Review, an annual report examining the most significant risks facing the U.S. banking industry during 2025. The report focuses on three primary areas: funding risk, interest rate risk, and credit risk, providing an overview of how changing economic conditions affected banks throughout the year. According to the FDIC, higher interest rates continued to pressure bank profitability, securities portfolios, funding costs, and liquidity, while credit quality remained an important area of focus across multiple lending sectors. The report also includes an executive summary, market analysis, and supporting reference materials such as a glossary and acronyms guide.

Credit Risks Remain a Major Focus

The FDIC’s review examines credit conditions across six major lending categories: commercial real estate, nondepository financial institution lending, business lending, consumer lending, residential real estate, and agriculture. The agency notes that credit risk remains inherent in all lending activities and can increase when borrowers experience financial stress or economic conditions weaken. The report is intended to help bankers, policymakers, analysts, and consumers better understand trends affecting the financial system and the health of FDIC-insured institutions. Previous editions of the annual Risk Review dating back to 2019 are also available through the FDIC.

Why the Report Matters

While the Risk Review is written primarily for financial professionals, its findings can affect consumers as well. Banking conditions influence everything from deposit rates and loan availability to overall financial stability, making the report a useful resource for anyone following the U.S. banking industry. Readers interested in learning more or reviewing the complete report can access the publication and supporting materials on the FDIC’s website.

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IRS Replaces First Time Abate Program With Automatic Penalty Relief for Taxpayers With Clean Compliance History

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IRS Automatic Exemption from Penalty
The IRS is rolling out its new Automatic Exemption from Penalty program, allowing many taxpayers with a clean filing and payment history to receive penalty relief automatically instead of requesting it. Photo For Everything/Shutterstock

The Internal Revenue Service is replacing its long-standing First Time Abate (FTA) program with a new system called Automatic Exemption from Penalty (AEP), making it easier for taxpayers with a strong compliance history to receive penalty relief. Announced on July 8, the new process is designed to automatically remove certain penalties for eligible taxpayers instead of requiring them to contact the IRS and request relief. IRS officials say the change will reduce paperwork, simplify tax administration, and help ensure qualifying taxpayers receive relief they may have previously missed. The agency expects the AEP program to begin rolling out during summer 2026, with a full transition for eligible returns due on or after January 1, 2027.

Who Qualifies for Automatic Relief?

To qualify for Automatic Exemption from Penalty, taxpayers generally must have a clean compliance history during the previous three tax years (or 12 consecutive quarters for quarterly filers). That means filing required returns on time and paying taxes due, or making appropriate payment arrangements when necessary. The relief applies to eligible original returns beginning with tax year 2025, 2026 quarterly returns, and future filing periods as the IRS completes the transition away from First Time Abate. While the relief is automatic for eligible taxpayers, those who do not qualify may still request penalty relief through the IRS’s traditional “reasonable cause” process.

Why the IRS Made the Change

Under the previous First Time Abate program, taxpayers often had to know the relief existed and proactively contact the IRS to request it, even when they clearly qualified. The new AEP process removes that extra step by reviewing eligibility during return processing and automatically applying relief when appropriate. The IRS estimates the new system will help significantly more taxpayers receive penalty relief while reducing the administrative burden on both taxpayers and the agency. Taxpayers with questions about their eligibility or individual circumstances should review the IRS’s Administrative Penalty Relief guidance or consult a qualified tax professional.

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CISA Warns of High-Severity Path Traversal Vulnerability in Rockwell Automation ThinManager, Urges Immediate Patching

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Rockwell Automation ThinManager vulnerability
CISA is urging organizations to immediately patch a high-severity vulnerability affecting multiple versions of Rockwell Automation ThinManager used in industrial control systems. Media_Photos/Shutterstock

The Cybersecurity and Infrastructure Security Agency (CISA) is warning organizations to immediately address a newly disclosed high-severity vulnerability affecting Rockwell Automation ThinManager, software commonly used in industrial control systems across critical infrastructure sectors. The advisory, released July 23, identifies a path traversal vulnerability tracked as CVE-2026-11917 that could allow an authenticated attacker to write arbitrary files outside permitted directories. CISA assigned the flaw a CVSS v3.1 score of 8.1, rating it High severity. The affected software is deployed worldwide in industries including energy, water and wastewater, food and agriculture, chemical manufacturing, and critical manufacturing.

Affected Versions and Available Updates

According to CISA, the vulnerability affects several supported versions of ThinManager. Organizations running versions 13.0.0 through 13.0.7 should update to 13.0.8, while those using 13.1.x, 13.2.x, and 14.0.x should upgrade to 13.1.6, 13.2.5, and 14.0.3, respectively. Rockwell Automation reported the issue to CISA and has released patched versions to address the vulnerability. Organizations that cannot update immediately should follow the vendor’s published security recommendations until patches can be applied.

CISA Recommends Immediate Mitigation

In addition to installing the latest software updates, CISA recommends minimizing network exposure for industrial control systems by ensuring they are not directly accessible from the public internet. The agency also advises placing operational technology networks behind firewalls, separating them from business networks whenever possible, and using fully updated VPNs for remote access. Before deploying any defensive measures, organizations should conduct a risk assessment to determine the potential operational impact. CISA says no known public exploitation of this specific vulnerability has been reported at this time, but organizations should review the official advisory and Rockwell Automation’s security guidance to determine how the issue may affect their environments.

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CMS Issues Technical Correction to 2027 Affordable Care Act Benefit and Payment Parameters Rule

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CMS Issues Technical Correction to 2027 Affordable Care Act Benefit and Payment Parameters Rule

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CMS technical correction
CMS has published a technical correction to the 2027 Affordable Care Act Benefit and Payment Parameters rule, clarifying regulatory language for insurers and Marketplace administrators without changing the underlying policy. Andrii Yalanskyi/Shutterstock

The Centers for Medicare & Medicaid Services (CMS) has issued a technical correction to its 2027 Notice of Benefit and Payment Parameters, updating portions of the Affordable Care Act (ACA) rule that governs health insurance marketplaces and the Basic Health Program. The correction was published in the Federal Register on July 21, 2026, but became effective July 20, 2026, according to CMS. Officials described the action as a technical fix that corrects errors in both the explanatory preamble and the regulatory text of the previously published final rule. The correction does not introduce new policy changes but ensures the rule accurately reflects CMS’s intended language.

What the Correction Means

The technical correction applies to regulations under 42 CFR Part 600 and 45 CFR Parts 150, 155, and 156, which establish standards for Affordable Care Act Marketplace plans and the Basic Health Program. The original 2027 rule affects health insurers, state and federally facilitated marketplaces, and consumers who purchase ACA-compliant health coverage. CMS said the correction addresses drafting errors identified after publication of the final rule, a routine step agencies sometimes take to clarify regulatory language without changing the underlying policy. Because the revisions are technical in nature, CMS waived additional notice-and-comment procedures and the usual delay before the correction took effect.

Who Should Pay Attention?

Most consumers are unlikely to notice an immediate impact from the correction itself. However, insurers, state marketplace administrators, compliance professionals, and organizations involved in ACA Marketplace operations should review the updated regulatory language to ensure they are following the corrected requirements. Anyone seeking detailed information about the revisions should consult the official Federal Register notice or CMS guidance, as the technical correction does not provide an extensive explanation of every change.

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DOJ Settles for $400 Million with Alaska Native Tribal Health Consortium Over Unpaid Healthcare Administrative Costs

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DOJ Settles for $400 Million with Alaska Native Tribal Health Consortium Over Unpaid Healthcare Administrative Costs

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Alaska Native Tribal Health Consortium settlement
The Alaska Native Medical Center in Anchorage is operated in part by the Alaska Native Tribal Health Consortium, which reached a $400 million settlement with the U.S. Department of Justice over unpaid healthcare administrative costs. Iljanaresvara Studio/Shutterstock

The U.S. Department of Justice (DOJ) has authorized a $400 million settlement with the Alaska Native Tribal Health Consortium (ANTHC) to resolve a lawsuit over unpaid contract support costs under the Indian Self-Determination and Education Assistance Act (ISDEAA). The agreement ends litigation filed in 2021, in which ANTHC argued the federal government failed to reimburse administrative expenses tied to operating federally authorized healthcare programs. The settlement follows a landmark 2024 Supreme Court ruling that clarified tribes are entitled to certain contract support costs associated with third-party healthcare revenue, such as Medicare and private insurance payments. DOJ officials said the agreement is intended to provide greater certainty for tribal healthcare providers and the communities they serve.

Why the Lawsuit Was Filed

ANTHC administers healthcare programs that the federal government would otherwise operate for American Indians and Alaska Natives in Alaska. The consortium also manages the non-primary care functions of the Alaska Native Medical Center, one of the nation’s largest tribally operated hospitals. In its lawsuit, ANTHC argued it should have been reimbursed for administrative costs incurred while managing healthcare services funded in part through payments from Medicare and private insurers. Those expenses, known as contract support costs, help cover the overhead required to operate federally authorized healthcare programs.

Supreme Court Decision Changed the Legal Landscape

While the lawsuit was pending, the U.S. Supreme Court ruled in Becerra v. San Carlos Apache Tribe that the federal government must reimburse qualifying contract support costs on third-party healthcare revenue when required under an ISDEAA agreement.

DOJ said that decision provided the legal framework that ultimately led to settlement negotiations with ANTHC. Acting Attorney General Todd Blanche said Congress intended tribes to be reimbursed for qualifying administrative expenses, while Associate Attorney General Stanley Woodward said the agreement reflects a commitment to resolving litigation fairly and supporting Native communities. The Justice Department announced the settlement on July 21, 2026.

Broader Impact for Tribal Healthcare

The settlement could have implications beyond Alaska, as many tribal organizations nationwide operate healthcare programs under ISDEAA compacts. It reinforces the federal government’s reimbursement obligations following the Supreme Court’s interpretation of the law and may influence similar claims involving tribal healthcare funding.

While the agreement resolves this particular lawsuit, it also highlights the continuing importance of tribal self-governance in delivering healthcare services to Native communities. Organizations with questions about ISDEAA reimbursement requirements should consult the appropriate federal agencies or qualified legal counsel.

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HHS Seeks OMB Approval for Children and Families Program Monitoring Data Collection

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HHS Seeks OMB Approval for Children and Families Program Monitoring Data Collection

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HHS ACF program monitoring
An employee reviews program data at a computer as HHS seeks public comment on extending information collection used to monitor federally funded children and family services programs. Gil C/Shutterstock

The U.S. Department of Health and Human Services (HHS), through its Administration for Children and Families (ACF), is asking for public input on a proposal to extend an existing information collection used to monitor federally funded programs that support children, families, and communities.

The request, published in the Federal Register on July 22, 2026, seeks approval from the Office of Management and Budget (OMB) to continue a “generic clearance” that allows ACF to collect standardized information from grant recipients. According to the agency, no changes are being proposed to the existing clearance, although burden estimates have been updated. Public comments will be accepted through August 21, 2026.

What the Data Collection Supports

Program monitoring is a routine post-award process used to evaluate how organizations receiving federal funding are managing their programs and complying with grant requirements. ACF says the information helps program offices assess both program performance and business management practices while ensuring responsible stewardship of taxpayer dollars.

The agency also uses the information to identify areas where grantees may need technical assistance or additional support to meet program goals. Because the clearance is generic, it allows ACF to efficiently approve individual monitoring activities without seeking a separate OMB review each time.

Who May Be Affected

The proposal primarily affects organizations that receive funding from ACF, including nonprofits, state and local agencies, tribal organizations, and other entities that administer children and family services programs. While the notice does not create new reporting requirements, it extends ACF’s authority to continue collecting information needed for ongoing oversight activities. Anyone interested in the proposal may submit comments through the federal comment process before the August 21 deadline. Additional details and submission instructions are available through the Federal Register and RegInfo websites.

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Celsius Network Founders Ordered to Pay $16.5 Million to Resolve FTC Charges

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Celsius Network FTC settlement
A smartphone displays cryptocurrency market data as the FTC announces a $16.5 million settlement with the founders of Celsius Network over allegations they misled consumers about the safety of customer funds. DCStockPhotography/Shutterstock

The Federal Trade Commission (FTC) announced that the founders of collapsed cryptocurrency platform Celsius Network will pay a combined $16.5 million to resolve allegations that they misled consumers about the safety of customer deposits. The settlements involve former CEO Alexander Mashinsky, former Chief Strategy Officer Shlomi Daniel Leon, and former Chief Technology Officer Hanoch “Nuke” Goldstein. According to the FTC, the executives falsely assured customers that funds deposited with Celsius were safe, secure, and always available for withdrawal, even as the company’s financial condition deteriorated.

FTC Alleged Consumers Were Misled

The FTC first filed its case against Celsius and its executives in 2023, alleging the company marketed itself as a safer alternative to traditional banks while making misleading claims about its lending practices, reserves, and risk management. Regulators said many customers believed their cryptocurrency deposits were protected when, in reality, Celsius engaged in risky business practices that ultimately contributed to its collapse. Celsius filed for bankruptcy in 2022 after freezing customer withdrawals, leaving many investors unable to access their funds.

Settlement Includes Industry Restrictions

Under the settlement orders, Mashinsky will pay $10 million, Leon will pay $4.1 million, and Goldstein will pay $2.4 million, totaling $16.5 million. In addition to the financial penalties, the founders are barred from marketing or selling many cryptocurrency-related products and services in the future. The FTC said the restrictions are intended to help prevent similar conduct and protect consumers from deceptive practices in the digital asset marketplace.

A Reminder About Cryptocurrency Risks

While the settlements close the FTC’s consumer protection claims against the founders, they also serve as a reminder that cryptocurrency investments often lack many of the safeguards associated with traditional financial institutions. Investors should carefully evaluate claims about safety, guaranteed returns, or easy access to deposited funds before committing money to any digital asset platform. Consumers who believe they may have been affected by the Celsius collapse should monitor official FTC and bankruptcy updates for information about ongoing proceedings or potential relief.

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