U.S. Proposes Voluntary Disclosure Program for Digital Asset Taxes

Huoxing Finance reports that Section 502 of the Digital Asset Tax Certainty Act (H.R. 10357), currently advancing in 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 may correct past digital asset tax violations by filing amended returns and paying outstanding taxes, interest, and program penalties. The bill was approved by the House Ways and Means Committee on September 16 with a 38–5 vote, but has not yet become law and still requires passage by both the House and Senate, followed by presidential signature. Andrew Gordon, Executive Director of the Digital Asset Tax Action Group, stated that this is a significant change that will assist many ordinary taxpayers, yet has received little attention. He noted that U.S. investors are entering their first filing season under 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 noted that filing errors among ordinary crypto investors are common, and current procedures lack standardized processes to provide predictable penalty treatment for non-willful violations. Under Section 502, taxpayers generally must file amended returns within 24 months of the program’s establishment, with two tiers of penalties set by the bill. Taxpayers who certify under penalty of perjury that their violations were neither fraudulent nor intentional may qualify for a 0% penalty on tax owed up to $25,000 per year and a 5% penalty on amounts exceeding that threshold if they file within the first 12 months after program launch; those who do not make this certification face penalties of 25% and 40%, respectively, with higher rates applying after the initial window closes. The bill also provides specific civil penalty exemptions: taxpayers who do not make the certification are protected from criminal referral for information disclosed within the program’s scope. According to CoinTracker’s 2026 report, only 49% of crypto users correctly understand that selling digital assets constitutes a taxable event.