IRS plans overhaul of voluntary tax disclosure program with lower penalties for crypto
The IRS plans to revamp its voluntary disclosure program with reduced penalties and faster resolution times, including for cryptocurrency tax violations.
Why it matters
The overhaul could encourage more taxpayers to voluntarily disclose past crypto tax noncompliance by reducing penalties and shortening resolution timelines from the current year-plus process.
Key facts
IRS plans to overhaul its voluntary disclosure program with reduced penalties and faster resolution
Reported by Cointelegraph
IRS Criminal Investigation Chief Jarod Koopman said the revised program targets launch before December
Reported by Cointelegraph
The IRS aims to resolve voluntary disclosure cases within 120 days of taxpayer submission completion
120 daysReported by Cointelegraph
No separate disclosure process will be created for digital assets; crypto will use existing voluntary disclosure procedures
Reported by Cointelegraph
Penalties under the revised program would be substantially lower than current levels
Reported by Cointelegraph
The IRS is considering installment plans or offers in compromise for settling outstanding liabilities
Reported by Cointelegraph
The current voluntary disclosure process can take a year or longer to complete
Reported by Cointelegraph
What happened
The US Internal Revenue Service is preparing to overhaul its voluntary disclosure program, aiming to reduce penalties and accelerate case resolution for tax violations involving cryptocurrencies. IRS Criminal Investigation Chief Jarod Koopman stated at the UCLA Extension Tax Controversy Conference that the revised program targets launch before December and aims to resolve cases within 120 days of submission completion. The agency will not create a separate disclosure process for digital assets, handling them through existing procedures. Koopman indicated penalties would be substantially lower than current levels, though specific figures were not provided, and the IRS is considering installment plans or offers in compromise.
How the story developed
- First report
First report by Cointelegraph
IRS plans lower tax disclosure penalties, including for crypto: Forbes
- Update
Forbes reports IRS voluntary disclosure program overhaul plans
IRS Criminal Investigation Chief Jarod Koopman announces planned changes at UCLA Extension Tax Controversy Conference
How coverage built up
Independent sources over time, counted the way the consensus panel counts them: a republication of a wire story does not move the line.
- 23 Oct 2026, 20:54 UTC: Cointelegraph — 1 independent source, 1 reports
- 26 Oct 2026, 01:45 UTC: Bitcoin.com News, official — 2 independent sources, 3 reports
Affected entities
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| Bitcoin.com News Company, official | Tax Preparer Accused of Claiming Losses on Crypto Never Owned | Independent | |
| Cointelegraph Crypto media | IRS plans lower tax disclosure penalties, including for crypto: Forbes | Original | |
| Crypto News (CryptoNews.net) Aggregator | IRS plans lower tax disclosure penalties, including for crypto: Forbes | Syndicated |
Related events
Adam Iza sentenced to 78 months and $23.4 million restitution over Meta fraud and sheriff's deputy scheme
A federal judge sentenced Adam Iza, who called himself 'The Godfather', to 78 months and $23.4 million restitution for a Meta fraud, tax evasion and hiring sheriff's deputies.
Irvine Woman Sentenced to 18 Months for Hiding Undeclared $2.6M in Fraud Proceeds
Iris Rabaya Au, 37, got 18 months in federal prison and was ordered to pay $1,484,343 after hiding more than $2.6M in fraud proceeds tied to Adam Iza.
Illinois and crypto groups ask a judge to delay 0.2% digital asset tax to July 2027
Illinois and two crypto groups asked a Sangamon County judge on October 1 to postpone the state's 0.2% digital asset tax from January 1 to July 1, 2027.
Bitcoin.com reports Kiyosaki divides income into earned, portfolio and passive types
Bitcoin.com News reported that Robert Kiyosaki used three income categories, earned, portfolio and passive, in a Sept. 23 X post, alongside claims about U.S. tax treatment.
IRS extended federal filing deadline for 2025 crypto returns lands Oct. 15, 2026
Crypto.News reports U.S. taxpayers who filed for an extension must file their 2025 federal returns, including digital-asset income, by Oct. 15, 2026, though tax owed was due in April.
Connecticut Man Pleads Guilty to Crypto Fraud Scheme Involving Offshore Gambling Site
Elmin Redzepagic, 25, of Wolcott, Connecticut pleaded guilty to wire fraud, money laundering, and false statements after routing investor funds to Stake.com.