According to ChainCatcher, citing Cointelegraph, Section 502 of the Digital Asset Tax Certainty Act (H.R. 10357), currently under consideration by the U.S. Congress, requires the Secretary of the Treasury to establish a voluntary disclosure program for digital assets within 12 months of the bill’s enactment.
Eligible taxpayers can correct past digital asset tax violations by filing amended returns and paying outstanding taxes, interest, and planned penalties. The bill was approved by the House Ways and Means Committee on September 16 by a vote of 38 to 5, but has not yet become law and still requires passage by the House and Senate, as well as presidential signature.
Andrew Gordon, Executive Director of the Digital Asset Tax Action Group, said this is a significant change that will help many ordinary taxpayers but has received little attention. He noted that U.S. investors are entering their first filing season under the new 1099-DA broker reporting rules, which give the IRS greater visibility into crypto transactions but do not address years prior to the rules’ implementation. Sharon Yip, CPA and founder of Crypto Tax Advisors, also stated that filing errors among ordinary crypto investors are very common, and existing procedures lack standardized processes to provide predictable penalty treatment for non-willful violations.
Under Section 502, taxpayers are generally required to file an amended return within 24 months after the plan's establishment, and the bill establishes two tiers of penalties. For taxpayers who certify under penalty of perjury that the violation was neither fraudulent nor intentional, and who file within the first 12 months after the plan's initiation, a 0% penalty applies to tax due up to $25,000 per year, and a 5% penalty applies to the amount exceeding that threshold.
Those who fail to provide this documentation will be subject to penalties of 25% and 40%, respectively, with additional tax increases applied after the initial window closes. The legislation also provides specific civil penalty exemptions, allowing taxpayers who disclose required information to avoid criminal referral within the scope of their disclosures. According to CoinTracker’s 2026 report, only 49% of cryptocurrency users correctly understand that selling crypto assets constitutes a taxable event.
U.S. Proposes Voluntary Disclosure Program for Past Tax Reporting on Digital Assets
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Summary
On September 16, the U.S. House Ways and Means Committee passed the Digital Asset Tax Certainty Act, requiring the Treasury to establish a voluntary disclosure program for digital asset compliance within 12 months. Taxpayers may amend prior returns and pay owed taxes, interest, and penalties. The bill is pending full House and Senate approval. The new 1099-DA rule enhances IRS oversight but does not apply retroactively. CoinTracker’s 2026 data reveals that only 49% of users are aware that selling cryptocurrency triggers capital gains tax.
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