IRS Plans Revised Voluntary Disclosure Program by November
The US Internal Revenue Service (IRS) plans to launch a revised Voluntary Disclosure Program (VDP) by the end of November, according to Jarod Koopman, head of the agency’s criminal investigation division. The changes aim to cut case-processing times to no more than 120 days after taxpayers submit complete documentation, reduce penalties and potentially allow instalment payments. The revised voluntary disclosure program will not have a separate pathway for crypto assets. The IRS says digital assets will be treated like other taxable income and handled through its general VDP process.
Neutral
The announcement is unlikely to create an immediate directional catalyst for crypto prices. It does not change the tax treatment of digital assets or introduce a crypto-specific disclosure route; instead, it places crypto within the IRS’s general voluntary disclosure process. In the short term, traders may see the news as a compliance update rather than a market-moving event, with sentiment and price action likely to remain more sensitive to broader risk appetite, flows and regulatory developments. Over the longer term, clearer processing timelines, potentially lower penalties and instalment options could encourage some taxpayers to disclose past liabilities, supporting greater tax compliance. Similar tax-reporting announcements can raise compliance concerns among investors, but this item does not signal a new tax or enforcement measure specific to crypto, limiting the likely market impact.