IRS Rejects Creating a Cryptocurrency Voluntary Disclosure Program – Golding & Golding
IRS Rejects Creating a Cryptocurrency Voluntary Disclosure Program
At a recent symposium in Texas, Mr. Daniel N. Price of the IRS Office of Chief Counsel was apparently the bearer of pretty devastating news (at least if you own cryptocurrency, and are out of compliance).
While there were previously rumblings of a specific Voluntary Disclosure program being developed for Cryptocurrency, Mr. Price shot that rumor down pretty quickly.
As provided by Amy Lee Rosen in an article for Law360, Mr. Price stated the following:
I need to dispel a rumor that actually arose at this conference last year,” Price said.
“Tax Analysts attributed a comment about a potential separate voluntary disclosure program for virtual currencies to a revenue official who spoke at a panel, and that was inappropriately attributed to that government official.
The IRS is not contemplating a separate program related to offshore [virtual] currencies.
Price encouraged taxpayers who might face potential criminal liability for offshore accounts to use the available programs like the streamlined program, voluntary disclosure and delinquent foreign bank account reporting, or FBAR, procedure.
What Does This Mean to You?
It means if you have unreported domestic or offshore cryptocurrency, you should highly consider submitting to one of the approved IRS Disclosure Programs.
Typically, an applicant chooses to enter one of the programs, because either they have:
- Unreported Income
- Undisclosed Sales or Exchanges
- Unreported Reporting of Foreign Accounts/Investments
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