New Crypto Disclosure Bill May Provide Relief for Taxpayers

A proposed federal bill could create a new pathway for taxpayers to address past digital asset reporting issues. Cryptocurrency taxation has been a source of confusion for investors since digital assets became mainstream. Many taxpayers have struggled with reporting requirements, particularly when dealing with activities such as trading, staking, airdrops and transfers across multiple platforms. As a result, some taxpayers may have unintentionally failed to report income or transactions correctly.

What Is the Digital Assets Voluntary Disclosure Program Act?

In June 2026, Rep. Aaron Bean introduced the Digital Assets Voluntary Disclosure Program Act (H.R. 9174), legislation that would direct the Treasury Department to establish a voluntary disclosure program specifically for digital assets. The proposed program would give taxpayers an opportunity to come forward and correct prior reporting issues, potentially with reduced penalties. The bill recognizes that many crypto-related tax problems stem from the complexity of the rules rather than intentional tax evasion.

How Would the Program Differ from the Existing IRS Voluntary Disclosure Practice?

The proposal is significant because the IRS already operates a Voluntary Disclosure Practice (VDP) that allows certain taxpayers to resolve historical tax compliance issues before the government discovers them. Although the existing IRS Voluntary Disclosure Practice can be used by taxpayers with digital asset reporting issues, it was not designed specifically for the unique compliance and recordkeeping challenges associated with cryptocurrency transactions. A crypto-focused program could provide a more practical solution for addressing the unique recordkeeping and reporting challenges often associated with digital assets.

This comes as the IRS continues to increase its focus on digital asset compliance and is gaining access to more information through expanded reporting requirements. At the same time, IRS officials have indicated they are evaluating updates to existing disclosure procedures and considering how digital assets should be addressed within those programs.

What Should Taxpayers with Unreported Digital Assets Consider?

While it remains to be seen whether the legislation ultimately becomes law, it signals a growing recognition that cryptocurrency presents unique compliance challenges. Taxpayers with unreported digital asset activity may want to review prior filings and discuss potential exposure with their tax advisors. If a dedicated disclosure program is implemented, it could provide a valuable opportunity for taxpayers to resolve past issues before the IRS identifies the noncompliance through its expanding reporting and enforcement efforts.