What This Bill Does
H.R. 9174 would direct the Treasury Secretary to create a Digital Assets Voluntary Disclosure Program within 12 months of enactment. The program is designed for taxpayers who failed to comply with tax rules involving digital assets such as cryptocurrency or other ledger-based assets, and it would let them file amended returns, pay back taxes and interest, and pay a new digital assets violation penalty. For some taxpayers, the penalty would be 25% of the underpaid tax up to $25,000 per year and 40% above that; for certified taxpayers who certify the violation was not fraudulent or willful, the penalty is lower. In return, eligible participants could avoid some additional civil penalties and, for uncertified participants, limit criminal referral and prosecution for the disclosed violations.
- Treasury must create the program within 12 months after enactment.
- Eligible taxpayers must file amended returns within 24 months after the program is established.
- Most participants must pay back tax, interest, and a digital assets violation penalty.
- Penalty is 25% up to $25,000 per year and 40% above that; certified taxpayers pay 0% and 5%.
- Late amended returns face higher penalties, and certified taxpayers then use a $100,000 threshold.
Who This Bill Affects
If you own or have traded digital assets and previously failed to report them correctly, this bill could give you a formal way to fix past tax problems by filing amended returns and paying back taxes, interest, and a set penalty. The biggest practical benefit is that certified participants could face much lower penalties, while uncertified participants could still get protection from some further civil penalties and, for disclosed violations, from criminal referral or prosecution under the listed tax-fraud and filing statutes. If you have no digital-asset tax issues, the bill would likely have little direct effect on you.
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- Taxpayers with past digital-asset reporting mistakes The program offers a structured way to correct prior returns, pay what is owed, and reduce the risk of harsher IRS enforcement. The lower penalty track for certified taxpayers rewards people whose mistakes were not fraudulent or willful.
- Tax professionals and compliance advisers A defined disclosure program can bring unclear digital-asset tax issues into the open and encourage voluntary compliance. The rules give taxpayers and advisers a clearer path for resolving old liabilities than ad hoc enforcement.
- Treasury and IRS enforcement officials The program could generate back taxes and interest while bringing previously undisclosed digital-asset activity into the tax system. The waiver and guidance authority also lets the Secretary tailor administration to different cases.
- Digital-asset holders worried about penalty exposure Even voluntary disclosure can be expensive because the bill requires payment of the deficiency, interest, and a penalty that can reach 40% of the underpaid tax, or more under the late-filing rules. Some taxpayers may see the program as too punitive to encourage participation.
- Taxpayers under audit or investigation Although waivers are possible, participation is limited for people already under IRS audit or criminal investigation unless the Secretary grants permission. That makes the program less accessible for taxpayers who may most need a clean resolution.
- Civil liberties and defense-oriented advocates The bill allows the Secretary to use disclosed information to block criminal use only within specific limits, but it still centers on IRS-controlled discretion and regulatory assurances. Critics may worry about uncertainty over how broadly the Secretary will interpret the program and its protections.
Key Implications
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““establish the Digital Assets Voluntary Disclosure Program””
Treasury would have to build a formal disclosure process specifically for digital-asset tax violations, rather than handling these cases only through ordinary audits or enforcement.
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““file, not later than 24 months after the date on which the Secretary establishes the program, an amended return””
Participants would have a limited window to correct past returns. Missing that deadline could mean losing access to the program’s benefits.
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““25 percent ... up to $25,000 ... plus 40 percent ... exceeds $25,000””
The penalty is tiered by the amount of underreported tax in each year, so larger cases face a much steeper cost than smaller ones.
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““0 percent ... 5 percent” for a certified eligible taxpayer”
Taxpayers who certify the violation was not fraudulent or willful can receive dramatically lower penalties, creating a strong incentive to self-classify as non-willful if truthful.
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““shall not use any information properly disclosed ... for purposes of referring such taxpayer for criminal investigation””
For uncertified eligible taxpayers, the bill offers a meaningful limit on criminal use of disclosed information, but only for violations properly disclosed under the program and only within the stated tax sections.
Latest Status
June 8, 2026
Referred to the House Committee on Ways and Means.
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Ask AI about this billData sourced from api.congress.gov.