Digital Assets Voluntary Disclosure Program Act
- Bill Number
- H.R. 9174
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-06-08: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-06-10T16:33:18Z
AI-Generated Summary
Summary of H.R. 9174: Digital Assets Voluntary Disclosure Program Act
Purpose
This legislation establishes a voluntary program allowing certain taxpayers to correct past failures to report or pay taxes related to digital assets, such as cryptocurrencies, by filing amended returns and paying owed amounts plus a special penalty. In return, participants receive relief from additional civil penalties and protection from certain criminal prosecutions for properly disclosed issues.
Key Provisions
- Program Establishment: The Secretary of the Treasury must create the Digital Assets Voluntary Disclosure Program within 12 months of the bill's enactment.
- Eligibility Categories:
- Uncertified eligible taxpayers: Those who do not certify under penalty of perjury that their violations were not fraudulent or willful; they must submit an application (with possible fee) and meet all remedial steps.
- Certified eligible taxpayers: Those who certify no fraud or willfulness; they skip the application but must still complete other requirements.
- Remedial Requirements: Participants must file amended tax returns for affected years (within 24 months for uncertified taxpayers), pay tax deficiencies plus interest, and pay a new "digital assets violation penalty." They must also provide any additional information requested.
- Penalty Structure: The digital assets violation penalty equals 25% (0% for certified) of deficiencies up to $25,000 per year plus 40% (5% for certified) on amounts above that. Higher rates apply if amended returns are filed more than 12 months after program launch. The Secretary may waive part or all of the penalty for reasonable cause or justice reasons.
- Benefits: Fulfilling requirements waives penalties under tax code sections 6662 and 6663 for disclosed issues and prevents use of disclosed information for most criminal investigations or prosecutions under sections 7201, 7203, or 7206.
- Definitions and Scope: Covers violations from the later of the first affected tax year or a look-back period (6 years generally, 3 years for certified) ending before enactment. "Digital asset" refers to value recorded on a cryptographically secured distributed ledger or similar technology.
Significant Changes to Existing Law
- Creates a new, asset-specific voluntary disclosure program outside standard IRS procedures, with tailored penalty rates and criminal protections.
- Allows immediate assessment and collection of deficiencies and the new penalty, bypassing some normal restrictions on assessment.
- Introduces a distinct penalty category for digital asset issues, with reduced rates for those certifying good faith.
- Extends the period for filing amended returns and provides assurances against using disclosed information against participants.
Potential Impacts
- Government Agencies: Increases administrative workload for the IRS in reviewing applications, processing amended returns, and handling payments, while potentially generating additional tax revenue from previously unreported digital asset activity.
- Citizens: Offers individuals and businesses holding digital assets a structured way to resolve compliance issues with reduced penalties, though late filers face higher costs and uncertified participants have stricter entry rules.
- International Relations: No direct effects specified, though the program may influence how U.S. taxpayers report cross-border digital asset transactions.
Main Stakeholders Affected
- Taxpayers who own or transact in digital assets during the applicable period.
- The Internal Revenue Service and Department of the Treasury, responsible for program administration and enforcement.
- Individuals or entities under ongoing IRS audits or criminal investigations related to digital assets, subject to waiver requirements for participation.
Notable Legal, Constitutional, or Political Implications
- Provides limited amnesty-like protections that override standard penalty and prosecution rules, raising questions about equitable treatment compared to other tax violations.
- Relies on the Secretary's broad regulatory authority to implement details, including assurances against misuse of information.
- Focuses on a growing asset class, potentially setting precedent for future targeted compliance programs without altering core constitutional tax powers.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-06-08: Referred to the House Committee on Ways and Means.
- 2026-06-08: Introduced in House
- 2026-06-08: Introduced in House
Bill Versions
- Digital Assets Voluntary Disclosure Program Act — issued 2026-06-08 — PDF (10 pages)