For a variety of reasons, taxpayers sometimes understate tax liabilities to the IRS. The IRS knows this. Tax evasion is a crime. Fortunately for the taxpayer who begins to lose sleep over the misdeed, the IRS has a Voluntary Disclosure program that will let qualifying taxpayers come forward and address the issue with the IRS before the IRS catches on and contacts the taxpayer.
The IRS and the Department of Justice are tackling tax evasion through the use of cryptocurrency and cybercrimes. Those who invest in and utilize cryptocurrency will notice they have to report cryptocurrency transactions on their annual income tax returns, and for the first time, there is a specific question to the taxpayer asking about the taxpayer’s involvement with digital currency. Knowing some taxpayers will intentionally fail to report their cryptocurrency income, the IRS has already updated its provisions in the Voluntary Disclosure program, to include cryptocurrency transactions.
If you have filed false tax returns and would like to speak with one of our attorneys concerning whether you qualify for an IRS voluntary disclosure, we are happy to help. We have successfully represented hundreds of taxpayers with IRS voluntary disclosures and are available to answer your questions, too.