Streamlined Filing vs. Voluntary Disclosure: Key Considerations for U.S. Taxpayers in 2026

Taxpayers who are behind on their federal filing obligations have two primary options for coming into compliance. While submitting a delinquent filing or late payment might seem like the best approach, this will often invite scrutiny from the IRS. As a result, most taxpayers will benefit from utilizing one of the IRS' streamlined voluntary disclosure programs instead. Learn more from Washington D.C. international tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group:

Two Options for Resolving Delinquent Filings with the IRS

The IRS is offering two streamlined voluntary disclosure programs in 2026. One of these programs is available to taxpayers who have committed certain non-willful violations, while the other is available to taxpayers who have committed willful violations and are at risk of criminal prosecution.

Resolving Non-Willful Foreign Asset Disclosure Violations Under the IRS’ Streamlined Filing Compliance Procedures

The IRS’ streamlined filing compliance procedures have been available in one form or another since 2012. The procedures have undergone several changes, including both expansions and modifications. Here are some key aspects of the IRS’ streamlined filing compliance procedures in 2026:

• The streamlined filing compliance procedures apply specifically to U.S. taxpayers’ obligations to disclose foreign financial assets.  
• Filing is an option for taxpayers who have committed non-willful violations.
• While submitting a streamlined filing provides a way to come into compliance, the streamlined filing process “will not culminate in the signing of a closing agreement with the IRS.”

There are different filing procedures for U.S. taxpayers living domestically and abroad, and all taxpayers must strictly comply with the relevant procedures when submitting streamlined filings. Taxpayers who submit streamlined filings must also generally be prepared to pay what they owe.

Resolving Willful Tax Law Violations Under IRS CI’s Voluntary Disclosure Practice

IRS CI’s Voluntary Disclosure Practice has also undergone several changes, though it has now been available in its current form for several years. Here are some key aspects of this voluntary disclosure program for U.S. taxpayers in 2026:

• IRS CI’s Voluntary Disclosure Practice provides a way to resolve all qualifying federal tax violations (including, but not limited to, foreign financial asset disclosure violations);
• Filing is an option for taxpayers who have committed willful violations.
• Willful violations present risks for criminal prosecution; and, while “[a] voluntary disclosure will not automatically guarantee immunity from prosecution . . . [it] may result in prosecution not being recommended.”

Submitting a voluntary disclosure begins with obtaining “preclearance” from IRS CI. Taxpayers who seek preclearance must be prepared to pay what they owe in full or enter into a full-pay installment agreement with the IRS.

Request a Call with Washington D.C. International Tax Attorney Kevin E. Thorn

If you need to know more about the IRS’ streamlined voluntary disclosure programs in 2026, we invite you to get in touch. To request a call with Washington D.C. international tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, please call 202-349-4033 or contact us confidentially online today.