Digital Assets Voluntary Disclosure Program Act
- Sponsor
- Rep. Bean, Aaron [R-FL-4]
- Committees
- Ways and Means Committee (primary)
- Last action
- Jun 8, 2026
Bottom line
This bill creates a structured pathway for individuals and entities with unreported digital asset-related tax liabilities to come into compliance with federal tax law, aiming to increase tax collection while offering incentives for voluntary disclosure.
What it actually does
This bill establishes a Digital Assets Voluntary Disclosure Program within the Treasury Department, allowing taxpayers to remedy past failures to comply with tax requirements related to digital assets. It provides a structured process for taxpayers to file amended returns, pay back taxes, interest, and specific penalties, in exchange for reduced penalties and, for certain taxpayers, protection from criminal investigation or prosecution.
Proponents argue
Proponents would argue that this program provides a crucial mechanism for taxpayers who may have inadvertently or negligently failed to report digital asset income to rectify their tax obligations without facing the harshest penalties. It offers a clear path to compliance, encourages tax collection on a rapidly evolving asset class, and provides certainty for taxpayers navigating complex digital asset regulations.
Opponents contend
Opponents might argue that the program, particularly the lower penalties for 'certified eligible taxpayers' who claim non-fraudulent or non-willful violations, could be too lenient on those who have actively avoided tax obligations. They might also contend that it could incentivize a 'wait and see' approach, where taxpayers only disclose once a program is established, rather than complying from the outset.
The bill is concise, allowing a reader to understand its core provisions relatively quickly, though the implications of its definitions and penalty structures require careful consideration.
Section 2(a)
Program Establishment
This section mandates the Secretary of the Treasury to create the Digital Assets Voluntary Disclosure Program within 12 months of the bill's enactment. The program is designed to allow eligible taxpayers to correct past failures to comply with tax requirements related to digital assets.
Supporters argue
Supporters would argue that establishing a formal program is essential to address the growing issue of undeclared digital asset income, providing a clear and structured path for compliance rather than ad-hoc enforcement.
Critics contend
No specific opposition is typically raised against the establishment of a program itself, but rather against its specific terms.
Tradeoffs
Balances the need for tax compliance with the practical challenges taxpayers face in navigating new asset classes and evolving tax guidance.
Section 2(b)
Program Participation Requirements
To participate, taxpayers must submit an application (with a potential reasonable fee), file amended returns for each applicable taxable year within 24 months of the program's establishment, and pay the aggregate deficiency of tax (including interest) and a specific digital assets violation penalty. Certified eligible taxpayers have slightly different requirements regarding the application.
Section 2(c)
Penalty Waivers and Criminal Investigation Protection
For uncertified eligible taxpayers, successful completion of the program waives accuracy-related (Section 6662) and fraud (Section 6663) penalties, and provides protection from criminal investigation or prosecution for tax evasion or fraud (Sections 7201, 7203, 7206) for properly disclosed violations. For certified eligible taxpayers, only accuracy-related penalties (Section 6662) are waived.
Section 2(d)(1)
Uncertified vs. Certified Eligible Taxpayer Definitions
This section defines an 'uncertified eligible taxpayer' as one who committed a digital assets violation and does not certify under penalty of perjury that the violation was non-fraudulent or non-willful. A 'certified eligible taxpayer' is one who makes this certification. Both categories can participate if subject to ongoing audits or investigations, provided they receive a waiver from the Secretary.
Section 2(d)(5)
Tiered Penalty Structure
The bill establishes a tiered digital assets violation penalty. For uncertified taxpayers, it's 25% on deficiencies up to $25,000 and 40% on amounts exceeding $25,000 per applicable year. For certified taxpayers, these rates are 0% and 5% respectively. These percentages increase to 40%/50% for uncertified and 5%/10% for certified taxpayers, with a $100,000 threshold for certified taxpayers, if amended returns are filed more than 12 months after the program's establishment. The Secretary retains the authority to waive part or all of the penalty for reasonable cause.
Both uncertified and certified eligible taxpayers who are already subject to an ongoing criminal investigation or IRS audit/examination can still participate in the program if they receive a waiver from the Secretary.
Section 2(d)(1)(B)(iii) and (C)(iii)
Why it matters:This is standard legislative practice to define eligibility criteria within the definition section. However, its significance for taxpayers already under scrutiny makes it a key detail.
Case for: Supporters would argue that allowing taxpayers already under investigation or audit to participate, with a waiver, broadens the program's reach and allows the IRS to resolve more cases efficiently, potentially saving enforcement resources.
Case against: Critics might argue that allowing taxpayers already caught or under scrutiny to enter a voluntary disclosure program, even with a waiver, could undermine the deterrent effect of enforcement actions, as it offers a potentially softer landing for those who might otherwise face more severe consequences.
Estimated impact: This provision could significantly increase the number of participants in the program, particularly those with higher tax liabilities who are more likely to be audited.
Grants the Secretary broad regulatory authority to carry out the program, including prescribing guidance and providing 'reasonable assurances' that properly disclosed information won't be used in contravention of the benefits (e.g., criminal protection).
Section 2(g)
Why it matters:Standard legislative practice to include a general regulatory authority clause.
Case for: Proponents would argue that broad regulatory authority is essential for the IRS to adapt the program to the rapidly evolving digital asset landscape and to provide necessary clarity and confidence to potential participants.
Case against: Critics might express concern that broad regulatory authority could lead to program rules being set without sufficient public input or congressional oversight, potentially altering the spirit of the bill through administrative action.
Estimated impact: The effectiveness and perceived fairness of the program will heavily depend on how the Secretary exercises this authority, particularly regarding the 'reasonable assurances' which are critical for taxpayer trust.