Frost Law Pushes IRS for Broader Voluntary Disclosure Access
Event summary
- Frost Law urged the IRS to expand its Voluntary Disclosure Practice by allowing payment plans and greater financial flexibility for taxpayers.
- The firm criticized the current three-month full-payment requirement, calling it exclusionary for financially struggling individuals.
- Frost Law supported proposed updates but argued for further revisions to include installment plans and offers in compromise.
- The IRS Criminal VDP program allows taxpayers with potential criminal tax exposure to avoid prosecution by voluntarily correcting issues.
The big picture
Frost Law’s push for changes to the IRS Voluntary Disclosure Practice highlights a broader trend toward making tax compliance more accessible. The firm argues that rigid payment rules create an unfair system where only financially stable taxpayers can avoid criminal exposure, potentially undermining the program’s goal of broadening compliance. If adopted, these changes could set a precedent for other government programs requiring upfront payments.
What we're watching
- Regulatory Flexibility
- Whether the IRS will adopt Frost Law’s recommendations to relax payment requirements in the Voluntary Disclosure Practice.
- Taxpayer Access
- How expanded access to VDP could impact compliance rates among financially distressed taxpayers.
- IRS Efficiency
- The pace at which the IRS can process voluntary disclosures if payment plans are introduced, potentially freeing up resources for other work.
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