5 Important Facts About the IRS Voluntary Disclosure Program (VDP) in 2026

The IRS’ Voluntary Disclosure Program (VDP) remains open in 2026. Filing under the VDP is an option for resolving willful tax law violations before the IRS opens an audit or launches a criminal investigation. Keep reading to learn five important facts about the VDP in 2026 from Washington D.C. tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group.

What U.S. Taxpayers Need to Know About the VDP in 2026

At present, the key terms of the IRS’ Voluntary Disclosure Practice (VDP) are remaining unchanged for 2026. However, the IRS is currently accepting public comments on a proposal that could lead to some significant changes later in the year. With this in mind, at present, some of the key aspects of the VDP in 2026 include:

1. The VDP is an Option for Resolving Willful Tax Law Violations

Submitting a voluntary disclosure is specifically—and exclusively—an option for resolving willful tax law violations. Filing under the VDP is not an option for avoiding liability entirely, but instead for working with the IRS to reach an amicable resolution that avoids criminal prosecution.

2. Taxpayers Must Not Currently Be Under Audit or Investigation

To qualify as “voluntary,” a taxpayer’s disclosure may not be triggered by an audit or investigation. This means that being the subject of an audit or investigation is a complete bar to filing under the VDP. Voluntarily providing information to the IRS when you are facing an audit or investigation can be very risky, so it is critical to know if you are already facing scrutiny before you come forward.

3. Protection Against Criminal Prosecution is Not Guaranteed Under the VDP

While participating in the VDP “may result in prosecution not being recommended,” this is not guaranteed. This is another critical reason to make an informed decision about coming forward. If you are considering a VDP filing, an experienced Washington D.C. tax lawyer will be able to assist with determining whether submitting a voluntary disclosure is a viable option in your case.

4. Taxpayers Who Are Not Eligible for the VDP Have Other Options Available

If you are not eligible to participate in the VDP, attempting to submit a voluntary disclosure is not the right approach. In this scenario, there are other options available. Here too, an experienced Washington, D.C., tax lawyer can assist you in making informed decisions based on your specific circumstances.

5. Taxpayers Seeking to Submit Voluntary Disclosures Should Seek Legal Counsel

Due to the risks involved and the complexity of the VDP process, taxpayers who are considering a voluntary disclosure should seek legal counsel promptly. While the IRS’ proposed changes may streamline the VDP process later in 2026, if you need to submit a voluntary disclosure, time is of the essence.

Request a Confidential Consultation with Washington D.C. Tax Lawyer Kevin E. Thorn

If you need to know more about the IRS’ Voluntary Disclosure Practice in 2026, we invite you to get in touch. Call 202-349-4033 or contact us online to request a confidential consultation with Washington D.C. tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group.