What's Happening?
Representative Aaron Bean introduced H.R. 9174, the Digital Assets Voluntary Disclosure Program Act, on June 8, 2026. This standalone bill aimed to establish a specific voluntary disclosure program for
digital assets. The core concept of H.R. 9174 was later incorporated into a broader digital-asset tax package as Section 502 of H.R. 10357. On September 16, 2026, the House Ways and Means Committee adopted a Chairman’s Amendment in the Nature of a Substitute and favorably reported H.R. 10357 to the House by a vote of 38-5. This proposed legislation seeks to provide a structured pathway for U.S. cryptocurrency investors to resolve past federal tax issues related to unreported digital-asset transactions. The bill, however, has not yet become law, and the proposed Digital Asset Voluntary Disclosure Program is not currently available. It addresses various aspects of digital assets, including cryptocurrency, stablecoins, NFTs, mining, staking, lending, trading, and broker reporting, and outlines different penalty structures and lookback periods for certified and uncertified taxpayers.
Why It's Important?
This proposed legislation is significant for U.S. taxpayers involved in digital assets, particularly those who may have inadvertently or willfully failed to report cryptocurrency transactions. If enacted, it would create a defined statutory route for correcting qualifying digital-asset violations, offering specified penalties and protections. This is crucial given the complex and evolving nature of cryptocurrency taxation. The bill distinguishes between certified taxpayers, who attest that violations were not fraudulent or willful, and uncertified taxpayers, who do not make such a certification. This distinction impacts penalty rates and lookback periods, potentially offering lower penalties and shorter lookback periods for certified disclosures. For instance, early certified disclosures could face 0% on deficiencies up to $25,000 and 5% above that, while uncertified taxpayers would face significantly higher rates. This framework aims to encourage compliance and provide clarity in an area where many taxpayers have faced uncertainty regarding their tax obligations.
What's Next?
H.R. 10357 has been favorably reported by the House Ways and Means Committee, marking meaningful legislative progress. However, it has not yet become law, meaning the proposed Digital Asset Voluntary Disclosure Program is not currently available. If enacted, the legislation generally requires the Treasury to establish the program no later than 12 months after enactment. Eligible taxpayers would then typically have 24 months after the program's establishment to complete the required filings. Taxpayers with unreported crypto taxes should not wait for this program to become law, but instead evaluate existing compliance procedures. The possibility of favorable future legislation does not negate the need to address current noncompliance, especially considering that prior IRS knowledge or enforcement activity can affect available disclosure options. The program's implementation would also involve detailed regulations from the Treasury, further defining its scope and operational aspects.
Beyond the Headlines
The introduction of H.R. 10357 reflects a growing recognition within Congress of the need for a dedicated federal compliance mechanism for historical digital-asset tax violations. This move highlights the challenges the IRS faces in regulating the rapidly expanding digital asset market and the difficulties taxpayers encounter in navigating complex tax rules for cryptocurrencies. The distinction between certified and uncertified taxpayers, based on willfulness, underscores the legal and ethical considerations surrounding tax compliance. It also signals a potential shift towards more structured and specialized tax frameworks for digital assets, moving beyond general tax laws. Furthermore, the bill's comprehensive nature, addressing various digital asset types and activities, indicates a long-term strategy to integrate digital assets more fully into the U.S. tax system, potentially setting precedents for future regulations and international cooperation, such as the Crypto-Asset Reporting Framework (CARF).
