IRS considers lower penalties for voluntary crypto tax disclosures

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The US Internal Revenue Service (IRS) plans to reduce penalties and speed up its voluntary tax disclosure programme, including for cryptocurrency-related violations, Forbes reported on 23 October.

IRS Criminal Investigation Chief Jarod Koopman said the agency aims to introduce the revised programme before December and resolve cases within 120 days of receiving completed submissions. Crypto-related cases would follow the same procedures as other tax violations.

The proposed changes could also allow taxpayers to settle outstanding liabilities through instalment plans or offers in compromise. The IRS has not disclosed specific penalty levels. The existing process can take a year or longer and is intended for taxpayers whose deliberate tax noncompliance could expose them to criminal prosecution.