What To Know About the IRS Voluntary Disclosure Program (VDP) in 2026

Underreporting or underpaying your federal tax obligations can have serious consequences. So can failing to disclose your offshore accounts or other foreign financial assets to the federal government. The consequences of these violations can be even more serious if you committed them willfully. In this scenario, submitting a voluntary disclosure could be your best option—but it is critical to ensure that you make an informed decision. Learn more from New York tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group:

The IRS Voluntary Disclosure Program (VDP) is an Option for Resolving Willful Tax Law Violations

The IRS’ Voluntary Disclosure Program (VDP) is an option for resolving willful tax law violations with the IRS. To qualify as “voluntary,” a disclosure must be made before the IRS initiates an audit or investigation. Once an audit or investigation is underway, participating in the VDP is no longer an option; you must defend against it successfully to avoid unnecessary consequences.

If you are not yet facing an audit or investigation, submitting a voluntary disclosure may be an option for avoiding IRS scrutiny. When you submit a voluntary disclosure under the VDP:

• Your submission is an application to participate in the VDP. The IRS will review your submission and decide whether it is willing to consider resolving your case out of court.
• If the IRS accepts your application, you will need to “[c]ooperate with the IRS in determining your correct liability.” At the end of the process, you should expect to “[p]ay in full or secure a full-pay installment agreement for the tax, interest, and any applicable penalties you owe.”
• Acceptance into the VDP is not a guarantee that the IRS will be willing to settle. As the IRS makes clear, “[a] voluntary disclosure will not automatically guarantee immunity from prosecution . . . [but] may result in prosecution not being recommended.”
• Given the risks involved with submitting a voluntary disclosure, experienced legal representation is critical. An experienced tax lawyer will be able to work with the IRS and target a favorable resolution on your behalf.
• While there can be risks involved with filing under the VDP, it can also be your best option for resolving a willful violation. An experienced tax lawyer can help you consider your options and make an informed decision.

From failing to report taxable income to fraudulently claiming credits and deductions, U.S. taxpayers can use the VDP to resolve a wide range of willful tax law violations. If you need more information about filing under the VDP in 2026, we strongly recommend consulting an experienced tax lawyer as soon as possible.

Contact New York Tax Lawyer Kevin E. Thorn

New York tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, has extensive experience helping clients resolve high-stakes federal tax controversies through the IRS’ Voluntary Disclosure Program (VDP). To discuss your situation with Mr. Thorn in confidence, call 914-534-6004 or request a confidential consultation online today.