Who Should (and Shouldn’t) File Under the IRS Voluntary Disclosure Program (VDP) in 2026?

If you have willfully violated the Internal Revenue Code or withheld information about your offshore accounts or other foreign financial assets from the federal government, you may be eligible to come into compliance through the IRS’ Voluntary Disclosure Program (VDP) in 2026. But before you file, there are several important factors you need to consider. Here are some key insights from Virginia tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group:

Should You Submit a Voluntary Disclosure to the IRS in 2026?

As with all aspects of federal tax compliance, deciding whether you should submit a voluntary disclosure to resolve a willful tax law violation requires a critical assessment of your specific circumstances. While filing under the IRS’s Voluntary Disclosure Program (VDP) can be the best option in some circumstances, it can be very risky in others.

So, how do you make an informed decision?

The IRS publishes the eligibility criteria for submitting a voluntary disclosure online. But, reading the information that the IRS has published online can leave you with more questions than answers. As a result, to make an informed decision, you will want to discuss your specific circumstances with an experienced tax lawyer promptly. An experienced tax lawyer will help you consider important factors such as:

• Are you currently the subject of an IRS audit or investigation? If you are, you are not eligible to submit a voluntary disclosure.
• Does your violation qualify as “willful” under federal law? If not, you will need to consider options other than filing under the VDP.
• Is your violation ineligible for other reasons? While the VDP covers willful tax law violations, it does not apply to illegal-source income or other federal-law violations.
• Is the IRS likely to accept your VDP application? If the IRS is not likely to accept your VDP application, you will need to consider other options in this scenario as well.
• Can you afford to pay what you owe? As the IRS makes clear, when you participate in the VDP, you must “[p] ay in full or secure a full-pay installment agreement for the tax, interest, and any applicable penalties you owe.”

Since you can run out of time to file under the VDP, it is critical to make an informed decision promptly. If you are considering filing under the VDP in 2026, or if you would like to learn more about other available options, we strongly recommend consulting with an experienced tax attorney as soon as possible.

Discuss Your Options with Virginia Tax Lawyer Kevin E. Thorn

If you have questions about submitting a voluntary disclosure under the VDP in 2026, Virginia tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, can help you make an informed decision. To discuss your options with Mr. Thorn in confidence, give us a call at 703-752-3752 or contact us confidentially online today.