IRS Overhauls Voluntary Disclosure Program, Cuts Penalties for Crypto — SkimNews
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- IRS plans to overhaul its voluntary disclosure program to reduce penalties and resolve cases within 120 days of submission, targeting faster compliance corrections for past tax violations.
- Jarod Koopman stated the IRS will handle crypto-related disclosures under the same procedures as other tax noncompliance, not through a separate digital asset process.
- IRS is considering installment plans and offers in compromise to help taxpayers settle outstanding liabilities under the revised voluntary disclosure program.
- IRS current program targets willful tax evaders and can take over a year to resolve, but the planned update aims to streamline the process significantly.
- Digital Asset Tax Certainty Act includes Section 502, which proposes a separate voluntary disclosure path for crypto taxpayers, including those with unintentional errors, after clearing the House Ways and Means Committee in September.
Why it matters: Taxpayers with unreported crypto gains or other willful violations could face lower penalties and faster resolution under the IRS overhaul, while the pending Digital Asset Tax Certainty Act creates a parallel path for non-willful cases—potentially reducing legal risk for thousands of crypto users who lacked clear guidance in early years.
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