IRS Proposes to Update Voluntary Disclosure Practice Program

The IRS is proposing to update its Voluntary Disclosure Practice, including a more streamlined penalty framework, the agency said Monday.

The proposed revisions aim to improve the IRS’s processes and encourage noncompliant taxpayers to come into compliance. Key changes include disclosure and compliance requirements, a new penalty framework, application and processing procedures, and payment terms, the IRS said in a release. The disclosure period generally will cover the most recent six years for delinquent and amended returns. Taxpayers who fully comply with the requirements won’t be recommended for criminal prosecution.

The IRS is accepting public comments on the proposed updates ...