IRS Voluntary Disclosure
New York Tax Controversy Lawyers for IRS Voluntary Disclosures
If you are behind on your federal tax obligations, coming current before the Internal Revenue Service takes action can help you avoid the risks of an audit or investigation. In some cases this involves filing a delinquent return or amended return. In others, an IRS voluntary disclosure is required. Some taxpayers who want to understand how disclosures fit within broader IRS procedures often review firm background before moving forward.
IRS Criminal Investigation’s Voluntary Disclosure Practice allows taxpayers to resolve willful tax violations and reduce the likelihood of criminal prosecution. Although IRS CI considers timely and complete voluntary disclosures when determining whether to recommend prosecution, a disclosure does not guarantee immunity. Because the process carries significant consequences, it is important to work with an experienced New York tax controversy lawyer who can guide you through each decision.
About IRS CI’s Voluntary Disclosure Practice
IRS CI’s program allows taxpayers who willfully failed to meet tax obligations to come forward and resolve their violations. Willful violations can lead to criminal charges that involve substantial fines and possible prison time. These offenses are often felonies, and they can affect a taxpayer’s life long after a case concludes.
Submitting a voluntary disclosure gives taxpayers the opportunity to avoid criminal prosecution in situations where charges might otherwise be pursued. Although a disclosure does not guarantee protection, the process focuses on creating a complete record, addressing liability and working toward a final resolution. Many individuals preparing for a disclosure also find value in reviewing related IRS enforcement information to understand how the government evaluates evidence.
Updates for 2025 and Beyond
IRS CI continues to strengthen its voluntary disclosure program for 2025. The agency is expanding its data matching initiatives across foreign bank reporting, cryptocurrency platforms, payroll records and information exchange agreements. These systems make it more likely that IRS CI will identify undisclosed income or assets, and they increase the importance of submitting an accurate and timely disclosure.
IRS CI is also prioritizing disclosures involving offshore matters, digital currency, payroll tax violations and high-income taxpayers. These trends mean the government expects more complete documentation and clearer explanations of past conduct than in earlier years. Our lawyers work closely with clients to assemble records that satisfy these new expectations.
The Requirements for Submitting a Voluntary Disclosure
Several requirements must be met for a valid voluntary disclosure. Determining whether you meet these requirements is the first step in deciding if a disclosure is the best option. Key requirements include:
- A disclosure must be submitted before the IRS initiates an audit or IRS CI initiates an investigation, before the IRS receives information from a third party, and before another governmental agency provides details about the violation.
- All required documentation must be submitted, including a properly completed IRS Form 2848 and any additional materials requested by IRS CI.
- The taxpayer must pay all taxes, interest and penalties due, or enter into a full-pay installment agreement.
- The taxpayer must be prepared to cooperate with the IRS throughout the evaluation and assessment process.
Taxpayers must also confirm that their willful violation qualifies for the Voluntary Disclosure Practice. Although most tax-related violations qualify, certain offenses such as violations involving illegal source income do not.
Submitting a voluntary disclosure begins the process. IRS CI evaluates the initial submission and determines whether protection under the program is appropriate. The evaluation may include requests for additional information, financial records or clarifying documents.
How We Assist New York Taxpayers with IRS Voluntary Disclosures
We have extensive experience helping taxpayers prepare and submit disclosures through IRS CI’s practice. Our services include:
- Evaluating whether you meet the voluntary disclosure requirements and whether a disclosure is in your best interests
- Communicating with IRS CI to confirm eligibility and begin preparing a complete submission
- Preparing every required component of the disclosure to avoid issues that delay review
- Working to secure a favorable resolution that limits exposure to criminal enforcement
Before preparing a disclosure, we also determine whether a different type of resolution would be more effective. Some taxpayers benefit from amended returns or other compliance approaches instead of a full voluntary disclosure. We help clients choose the right strategy by evaluating all relevant risks and available options.
Schedule a Confidential Consultation with a New York Tax Controversy Lawyer Today
If you are considering a voluntary disclosure, speak with a lawyer before submitting anything to the IRS. An experienced New York tax controversy lawyer at Thorn Law Group can help you understand the process and your responsibilities. To schedule a confidential consultation, call (914) 534-6004 or send us your contact information online today.
