US DOL Tax Violation Retaliation Rule Takes Effect

The U.S. Department of Labor is implementing a new rule for handling employee retaliation complaints under the Taxpayer First Act. 

Enacted July 1, 2019, TFA protects employees who report or assist in an investigation about tax violations.

Someone who assists in any action the IRS takes is protected. 

OSHA published an interim rule with procedures and time frames March 7, 2022. It became effective March 13, 2023. 

The rule prohibits retaliation of any kind against the employee who reports the fraud or underpayment of taxes.

That includes firing or laying someone off, disciplining the person, reducing salary, or making threats. 

Employees must file a complaint within 180 days after learning about the retaliatory act.