Hawkeye Reporter

At a Senate Finance Committee nominations hearing, Sen. Chuck Grassley (R-Iowa) questioned President Trump’s nominee for Chief Counsel of the Internal Revenue Service (IRS), Donald Korb, about key issues facing the agency. Grassley focused on concerns with the IRS Whistleblower Program and the implementation timeline for the Clean Fuels Credit under section 45Z.

Grassley highlighted delays in processing whistleblower claims, noting that award announcements can take more than a decade. “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?” Grassley asked.

He also referenced his role in authoring legislation that resulted in $7.5 billion being returned to federal coffers through whistleblower efforts: “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 pressed both Korb and Jonathan Greenstein, nominee for Deputy Under Secretary of Treasury, on when stakeholders could expect guidance for implementing modifications to Clean Fuels Credit under 45Z, which are set to begin next year. He expressed concern about potential regulatory delays affecting farmers and biofuel producers: “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.”

Addressing Greenstein directly regarding guidance timing, Grassley asked: “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.”

Grassley also raised concerns over uncertainty created by lack of formal guidance on claiming credits this tax year: “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.”

Korb responded with a commitment if confirmed: “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.”