A bipartisan bill introduced in the Senate seeks to create a Crypto Tax Disclosure Program that lets taxpayers voluntarily correct prior-year crypto reporting mistakes.
Under the draft, eligible filers could submit an amended return and receive reduced penalties—potentially as low as 10% of the original fine—provided they meet a set of disclosure criteria and cooperate with the IRS.
The legislation arrives amid growing frustration from both the crypto community and tax authorities. Recent audits have uncovered widespread misreporting, often stemming from the sector’s rapid evolution and the complexity of tracking dozens of token transactions.
If enacted, the bill could encourage broader compliance, lower the risk of costly enforcement actions, and give investors a clear pathway to resolve past errors without fear of punitive backlash.
