#IRSPlansLowerTaxDisclosurePenaltiesForCryptoCases
This is important news for crypto investors. The IRS is planning to reduce penalties for certain taxpayers who voluntarily disclose previously unreported income, including cryptocurrency-related tax violations. However, the proposed changes are not yet confirmed as a finalized program
What happened?
According to a report published on October 23, 2026, the US Internal Revenue Service (IRS) is preparing to overhaul its Voluntary Disclosure Program.
Here are the key points:
Lower penalties: The revised program is expected to impose significantly lower penalties than the current program.Faster processing: The IRS is targeting a resolution timeline of up to 120 days after taxpayers complete the required submission process.Flexible payments: Installment plans and offers in compromise are being considered.Crypto is included: Cryptocurrency tax cases will be handled through the general voluntary disclosure program rather than a separate crypto-specific process.Expected launch: The IRS is aiming to introduce the revised program before December 2026.
This is important news for crypto investors. The IRS is planning to reduce penalties for certain taxpayers who voluntarily disclose previously unreported income, including cryptocurrency-related tax violations. However, the proposed changes are not yet confirmed as a finalized program
What happened?
According to a report published on October 23, 2026, the US Internal Revenue Service (IRS) is preparing to overhaul its Voluntary Disclosure Program.
Here are the key points:
Lower penalties: The revised program is expected to impose significantly lower penalties than the current program.Faster processing: The IRS is targeting a resolution timeline of up to 120 days after taxpayers complete the required submission process.Flexible payments: Installment plans and offers in compromise are being considered.Crypto is included: Cryptocurrency tax cases will be handled through the general voluntary disclosure program rather than a separate crypto-specific process.Expected launch: The IRS is aiming to introduce the revised program before December 2026.