BTC $71,807
2026 Bull Run Is Building Start trading with 5% OFF all fees
Sign Up Now
BTC $71,807
Bull Run 2026 | 5% Off Fees Open your Binance account today
Sign Up

IRS to Cut Penalties, Speed Up Crypto Tax Disclosure Program

IRS targets new voluntary disclosure program overhaul, lower penalties, and faster 120-day crypto tax resolution

  • The IRS is overhauling its voluntary disclosure program, targeting lower penalties and faster resolution of tax violations, including those involving cryptocurrencies.
  • IRS Criminal Investigation Chief Jarod Koopman stated the revised program aims to resolve cases within 120 days, with implementation expected before December.
  • Digital assets will be handled through the same disclosure procedures as other noncompliance, with no separate process planned.
  • Penalties under the new program will be substantially lower than current levels, though specific figures remain undisclosed.
  • Lawmakers are separately considering the Digital Asset Tax Certainty Act, which would create a voluntary disclosure program for crypto taxpayers, including those with unintentional errors.

IRS Criminal Investigation Chief Jarod Koopman announced Friday that the agency plans to overhaul its voluntary disclosure program before December, promising lower penalties and accelerated resolution for tax violations, including those involving cryptocurrencies, according to a Forbes report. The revised program targets case resolution within 120 days of taxpayers completing the required submission process.

- Advertisement -

However, the overhaul will not establish a separate disclosure process for digital assets. Koopman told attendees at the UCLA Extension Tax Controversy Conference that the IRS would handle cryptocurrencies through the same voluntary disclosure procedures used for other forms of tax noncompliance.

Penalties under the revised program will be substantially lower than those currently imposed, though Koopman provided no specific figures. The agency is considering allowing taxpayers to settle outstanding liabilities through installment plans or offers in compromise.

The proposed changes mark a shift from the existing process, which can take a year or longer to complete. The current program is intended for taxpayers whose willful failure to comply could lead to criminal prosecution, not those with unintentional reporting errors.

Meanwhile, lawmakers are considering a separate voluntary disclosure program aimed at crypto taxpayers, including those who made unintentional errors. Section 502 of the proposed Digital Asset Tax Certainty Act would establish a process for correcting past violations with defined penalties, unlike the IRS‘s existing program. The bill cleared the House Ways and Means Committee in September.

- Advertisement -

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

- Advertisement -
Ad
Altseason Is Loading. Don't watch from the sidelines.
SOL $90.51
DOGE $0.0963
LINK $9.02
SUI $1.00
5% off fees when you sign up
Start Trading
Ad
Pay Less on Every Trade. For Life.
$10K/mo volume Save $60/yr
$50K/mo volume Save $300/yr
$100K/mo volume Save $600/yr
5% off all trading fees when you sign up
Claim Your Discount

Latest News

Ruby Patches Critical Regex Flaws After GitLab CVEs

Ruby released versions 4.0.9, 3.4.12, and 3.3.13 to patch four critical vulnerabilities in the...

Senator demands Tether records on Hines deal

Sen. Richard Blumenthal has demanded Tether hand over records on its dealings with Bo...

k0t Campaign Exploits Fortinet and Palo Alto Firewalls

A large-scale campaign targeting Fortinet and Palo Alto Networks firewalls has been disclosed, with...

BRICS Drops De-Dollarization, Vows Not Anti-Western

India opposes de-dollarization but supports using local currencies for cross-border trade Russian Ambassador Denis Alipov...

a16z Drops ‘Crypto’ From Its Fund Name

Andreessen Horowitz rebranded its crypto fund to a16z Frontier, expanding into AI and biology...

Must Read

7 Best NFT Marketplaces for Every Need

Open Sea | Pianity | Foundation | Magic Eden | SuperRare | Rarible | Theta Drop | Other Platforms | About NFTs | FAQ...
Ad
Altseason Is Loading. These 4 coins are trending right now.
SOL $92.12
DOGE $0.0950
LINK $9.02
SUI $1.02
5% off spot fees when you sign up
Start Trading