---
title: "IRS Plans Lower Voluntary Disclosure Penalties Across Tax Cases, Including Crypto"
description: "The tax agency aims to launch an overhauled voluntary disclosure framework before December, targeting 120-day resolutions and reduced fines."
url: https://basisdesk.news/news/irs-plans-lower-tax-disclosure-penalties-crypto
published: 2026-10-23T21:21:20.914Z
modified: 2026-10-23T21:21:20.914Z
section: Regulation & Policy
author: Basis Desk Newsroom (AI-generated, source-verified)
sentiment: neutral
tickers: []
tags: [IRS, tax-compliance, voluntary-disclosure, regulation, crypto-tax]
license: Quote with attribution to Basis Desk (basisdesk.news). Not financial advice.
---

# IRS Plans Lower Voluntary Disclosure Penalties Across Tax Cases, Including Crypto

The tax agency aims to launch an overhauled voluntary disclosure framework before December, targeting 120-day resolutions and reduced fines.

## At a glance

- **What happened:** The IRS announced plans to overhaul its voluntary disclosure program before December, cutting penalties and setting a 120-day target for resolving cases.
- **Why it matters:** The change will lower financial burdens and reduce resolution wait times from a year or more for taxpayers facing potential criminal tax exposure, including on digital assets.
- **Who is affected:** US taxpayers with past willful tax noncompliance, including cryptocurrency holders.
- **What's next:** The IRS aims to roll out the revised voluntary disclosure program guidelines before December.
- **Status:** announced
- **Primary source:** [IRS plans lower tax disclosure penalties, including for crypto: Forbes](https://cointelegraph.com/news/irs-plans-lower-penalties-for-crypto-tax-disclosures-forbes-reports?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound) — cointelegraph.com

## Key points

- The IRS plans to roll out an overhauled voluntary disclosure program before December with significantly reduced penalties [1].
- The agency aims to shorten the case resolution timeline to 120 days after submission, down from typical durations of a year or more [1].
- Crypto cases will be processed through the general disclosure system rather than a separate administrative track [1].

## Editorial remark

- **Context:** The existing IRS voluntary disclosure system primarily handles willful tax noncompliance to mitigate criminal prosecution, often taking a year or longer to resolve.
- **Impact:** Taxpayers facing past cryptocurrency tax liabilities could resolve cases faster with lower financial penalties and potential access to installment payment plans.
- **Watch:** The formal launch of the revised voluntary disclosure guidelines expected before December, alongside the legislative trajectory of the Digital Asset Tax Certainty Act.

The US Internal Revenue Service is preparing to revamp its voluntary disclosure program by cutting financial penalties and speeding up case processing for tax noncompliance, including violations involving digital assets [1]. 

Speaking at the UCLA Extension Tax Controversy Conference, IRS Criminal Investigation Chief Jarod Koopman stated that the agency intends to implement the updated program before December [1]. Under the planned framework, the IRS targets resolving cases within 120 days after a taxpayer finishes the formal submission process [1]. The revised rules will not create a standalone track for digital assets; instead, cryptocurrency matters will follow the standard voluntary disclosure system alongside other tax compliance cases [1]. 

Koopman indicated that penalties will be substantially lower than existing levels, though the agency has not yet disclosed exact figures [1]. The IRS is also weighing whether to let participants satisfy back taxes through installment agreements or offers in compromise [1]. Under the current system, cases can take a year or more to conclude [1]. That structure is designed specifically for individuals whose willful failure to report income exposes them to potential criminal prosecution, rather than taxpayers responsible for accidental accounting mistakes [1]. Taxpayers navigating baseline obligations can review [crypto taxes in the US](https://basisdesk.news/news/crypto-taxes-us-basics) for context on digital asset tax treatment [1].

## Parallel Legislative Efforts

While the IRS updates administrative procedures, federal lawmakers are advancing separate statutory relief [1]. The House Ways and Means Committee approved the Digital Asset Tax Certainty Act in September [1]. Section 502 of that legislation proposes a dedicated disclosure program specifically for cryptocurrency holders, offering structured penalties and covering unintentional filing mistakes alongside noncompliance [1].

## FAQ

**Will there be a separate IRS disclosure program for cryptocurrencies?**

No. The IRS plans to process cryptocurrency disclosures through its general voluntary disclosure program rather than a dedicated pathway [1].

**How quickly does the IRS expect to resolve voluntary disclosures under the new rules?**

The agency is aiming to conclude cases within 120 days after a taxpayer completes the required submission [1].

## Sources

1. [IRS plans lower tax disclosure penalties, including for crypto: Forbes](https://cointelegraph.com/news/irs-plans-lower-penalties-for-crypto-tax-disclosures-forbes-reports?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound) — cointelegraph.com, 2026-10-23

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Basis Desk Newsroom · AI-generated, source-verified · https://basisdesk.news/about/how-we-use-ai