Should You File Under the IRS Voluntary Disclosure Program (VDP) in 2026?

Filing under the IRS’ Voluntary Disclosure Program (VDP) is an option for U..S. taxpayers who need to resolve willful violations of the Internal Revenue Code (IRC), Bank Secrecy Act (BSA), Foreign Account Tax Compliance Act (FATCA), and other federal tax laws. While there have been several iterations of the VDP over the past couple of decades, the current version has been in place for several years. If you have questions about filing under the VDP in 2026, here are some important insights from New Jersey tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group:

Filing Under the VDP is an Option for Resolving Willful Violations If You Aren’t Already Facing an Audit or Investigation

While filing under the Voluntary Disclosure Program (VDP) is an option for resolving willful tax law violations, it is only an option if you are not the subject of a pending IRS audit or investigation. If you are already facing scrutiny from the IRS, it is too late to make a voluntary disclosure.

The VDP has Strict Eligibility Criteria and Filing Requirements

If it isn’t too late to make a voluntary disclosure, you will need to begin by determining if you are eligible to file. An experienced tax lawyer can assist you with making this determination, and since attempting to submit a voluntary disclosure when you aren’t eligible can trigger IRS scrutiny, it is critical to ensure that you make an informed decision.

If you are eligible to file and this is your best option under the circumstances at hand, you will need to strictly comply with the VDP’s substantive and procedural filing requirements. Filing miscues can also render you ineligible—and, once you voluntarily submit information about a willful violation of the law, the IRS is free to use this information against you.

Applying for the VDP Does Not Guarantee Immunity From Criminal Prosecution

With that said, successfully filing an application under the VDP does not guarantee immunity from criminal prosecution. The IRS makes this clear, noting that submitting a voluntary disclosure “may result in prosecution not being recommended.” Once you submit your application, you will need to be prepared to work with the IRS to accurately determine your liability; and, at the end of the process, you will need to “[p]ay in full or secure a full-pay installment agreement for the tax, interest, and any applicable penalties you owe.”

Ultimately, however, if you need to rectify a willful tax law violation and you are eligible to file under the VDP, submitting a voluntary disclosure could be your best option. If you need to make an informed decision about whether to file under the VDP in 2026, we strongly recommend consulting with an experienced tax lawyer promptly.

Need to Know More? Schedule a Confidential Consultation with New Jersey Tax Lawyer Kevin E. Thorn

Do you need to know more about filing under the VDP in 2026? If so, contact us today. Call 201-842-7696 or contact us online to schedule a confidential consultation with New Jersey tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group.