The US Internal Revenue Service is preparing to update its voluntary disclosure program to reduce penalties and speed up the resolution of tax violations. This initiative covers various tax issues, including those related to cryptocurrencies, according to a report by Forbes.
Jarod Koopman, Chief of IRS Criminal Investigation, stated that the agency plans to launch the revised program before December. The goal is to resolve cases within 120 days after a taxpayer completes the submission process.
The IRS will not create a separate disclosure track for digital assets, opting instead to integrate them into existing procedures. The agency is also considering new payment options, such as installment plans or offers in compromise, to help taxpayers settle their liabilities.
Current voluntary disclosure rules are designed for cases involving willful noncompliance that could lead to criminal prosecution. The proposed changes aim to replace the existing process, which often takes a year or more to finalize.
Separately, lawmakers are reviewing the Digital Asset Tax Certainty Act. Section 502 of this bill proposes a distinct disclosure program for crypto taxpayers, including those who made unintentional reporting errors. The bill passed the House Ways and Means Committee in September.
