IRS prepares lower penalties for voluntary crypto tax disclosures

The Internal Revenue Service is preparing to overhaul its voluntary disclosure program to reduce penalties and accelerate resolutions for taxpayers reporting past violations, including those involving cryptocurrencies. Cointelegraph, Forbes, TradingView, and KuCoin all reported on the planned changes to the agency program. [1][2][3][4]

IRS Criminal Investigation Chief Jarod Koopman stated that the agency aims to introduce the revised program before December. According to Cointelegraph, the agency is targeting a resolution timeframe of within 120 days after taxpayers complete the required submission process. [1]

Cointelegraph reported that the planned overhaul will feature lower penalties and offer taxpayers more flexible payment options. The updated structure will not create a separate disclosure process for cryptocurrency cases. [1]

The agency aims to streamline the resolution of past tax non-compliance through these voluntary disclosures. The program revisions are intended to facilitate faster settlements between taxpayers and federal authorities. [1]