Key facts
- IRS plans to overhaul its voluntary disclosure program.
- Penalties for tax violations, including crypto, are expected to be lower.
- The agency aims to resolve cases within 120 days.
- Digital assets will be handled through existing voluntary disclosure procedures.
- Installment plans or offers in compromise may be allowed for settlement.
The US Internal Revenue Service (IRS) is planning to revise its voluntary disclosure program to offer reduced penalties and faster resolutions for tax violations, including those involving cryptocurrencies, according to Forbes. IRS Criminal Investigation Chief Jarod Koopman indicated the agency aims to implement the changes before December, targeting case resolutions within 120 days of submission. Digital assets will be managed under the same procedures as other tax noncompliance issues, with potentially lower penalties and options for installment plans or offers in compromise. This overhaul contrasts with the current lengthy process and is distinct from a separate voluntary disclosure program for crypto taxpayers being considered by lawmakers.