IRS Voluntary Disclosure Program (VDP): Important Information for 2026

The IRS’ Voluntary Disclosure Program (VDP) provides a way for U.S. taxpayers to proactively resolve willful tax law violations. The alternative—taking a wait-and-see approach—is extremely risky, as failing to remedy known tax law violations can lead to additional consequences. Learn some important information about filing under the VDP in 2026 from Boston tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group:

What the VDP Covers (and What It Doesn’t)

As noted above, the Voluntary Disclosure Program (VDP) is specifically an option for resolving willful tax law violations. This includes not only violations of the Internal Revenue Code, but also violations of federal statutes such as the Bank Secrecy Act (BSA) and Foreign Account Tax Compliance Act (FATCA). As the IRS explains:

“The VDP is a compliance option if you have willfully failed to comply with tax or tax-related obligations or committed tax or tax-related crimes . . . . Taxpayers who participate in the VDP intend to seek protection from potential criminal prosecution.”

If you have recently discovered that you inadvertently violated the law, you will still want to come forward proactively, but filing under the VDP is not an option in this scenario—because your initial violation wasn’t willful. The VDP is specifically (and exclusively) an option for resolving tax-related violations that involve criminal exposure.

What to Expect (and What Not to Expect) if You File Under the VDP

While filing under the VDP offers an opportunity to avoid criminal prosecution, avoiding criminal prosecution is not guaranteed. The IRS makes this clear, stating, “[a] voluntary disclosure will not automatically guarantee immunity from prosecution . . . [but] may result in prosecution not being recommended.” As a result, before filing under the VDP, it is critical to do what you can to ensure that submitting a voluntary disclosure will not make your situation worse instead of better.

Once you submit a voluntary disclosure, the IRS will review your filing and then determine what action is appropriate. In the vast majority of circumstances, resolving tax controversies under the VDP involves negotiating a settlement with the IRS—and, as the IRS explains, filers should be prepared to “[c]ooperate with the IRS in determining [their] correct tax liability.” If you hire an experienced Boston tax lawyer to represent you, your lawyer will be able to seek to engage with the IRS proactively to determine if this is a viable outcome in your case.

What if You Aren’t Eligible to Make a Voluntary Disclosure?

If you need to resolve an outstanding tax deficiency and you aren’t eligible to make a voluntary disclosure, the options you have available depend on the specific circumstances of your case. Here too, an experienced tax lawyer can help you make informed decisions before engaging with the IRS on your behalf.

Schedule a Confidential Consultation with Boston Tax Lawyer Kevin E. Thorn

If you need more information about the options for resolving tax deficiencies with the IRS in 2026, we invite you to get in touch. Please call 617-692-2989 or contact us online to schedule a confidential consultation with Boston tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group.