IRS to Launch Faster Tax Disclosure Program by December
Taxpayers could see lower penalties and a 120-day resolution target for violations under a new IRS disclosure program.
Updated on Oct. 23, 2026 in Taxes
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Should the IRS prioritize faster case resolution over current penalty levels for voluntary tax disclosures?
The Internal Revenue Service plans to introduce a revised voluntary disclosure program by December 2026 to streamline tax violation resolutions. Taxpayers with past non-compliance, including crypto-related issues, may benefit from faster processing and lower potential penalties.
Why it matters
This overhaul aims to reduce the current process from a year or longer to 120 days, offering taxpayers a more efficient path to resolve past tax violations. By potentially lowering penalties and introducing flexible payment options, the IRS is seeking to improve compliance and simplify the path to resolution.
The IRS plans to target a 120-day resolution window for voluntary disclosure cases, a significant shift from the current timeline that often stretches beyond a year.
The players
Internal Revenue Service
The federal agency responsible for tax administration, enforcement, and taxpayer service.
House Ways and Means Committee
The congressional body responsible for oversight of tax-related legislation.
The details
The revised program will leverage existing disclosure procedures while integrating new paths for digital asset taxpayers as outlined in Section 502 of the Digital Asset Tax Certainty Act. Households may be able to settle outstanding tax liabilities through installment plans or offers in compromise. The initiative focuses on lowering penalty burdens compared to the current regime to encourage voluntary reporting.
Timeline
September 2026: The House Ways and Means Committee cleared the Digital Asset Tax Certainty Act.
Before December 2026: The IRS expects to introduce the revised voluntary disclosure program.
Money Landscape
This move marks a shift toward modernizing tax enforcement as the agency adapts to the growth of digital assets. It follows the precedent of the Digital Asset Tax Certainty Act, signaling a broader effort to align federal oversight with evolving digital asset transactions.
If you have unresolved tax concerns, the upcoming program may offer a path to settle liabilities with reduced penalties and shorter wait times. Consult with a qualified tax professional before the December rollout to determine if these new disclosure options fit your financial situation.
The takeaway
The upcoming IRS program change aims to resolve outstanding tax matters within 120 days, potentially easing the financial impact of prior violations. Keep an eye on official guidance regarding the program launch before December and discuss your specific tax status with a qualified professional.
Further reading
Learn more about managing your tax obligations in our guide to Taxes.
Live Poll
Should the IRS prioritize faster case resolution over current penalty levels for voluntary tax disclosures?
