Representative Aaron Bean (R-FL) has introduced legislation to ease taxpayers' burden in disclosing taxable digital assets, thereby correcting past issues with unreported or underreported liabilities.
What the Bill Does
Rep. Bean's Digital Assets Voluntary Disclosure Program Act establishes a voluntary disclosure program for taxpayers holding digital assets, such as cryptocurrency, to report their holdings and thereby address past noncompliance.
Specifically, digital assets must be fully disclosed and corrected, the outstanding taxes (and any applicable interest) must be paid, and taxpayers must cooperate with the Internal Revenue Service (IRS).
In return, the compliance process will be streamlined, and penalties will be limited.
What Lawmakers are Saying
"Taxes are complicated enough," said Rep. Bean in a press release. "Add digital assets to the mix, and many Americans are left trying to navigate a confusing and evolving set of rules. My bill gives taxpayers who want to do the right thing an opportunity to correct past mistakes and come into compliance."
Representative Jason Smith (R-MO), the bill's cosponsor, added, "Most taxpayers want to follow the law and pay what they owe, but the complexity surrounding digital assets has left some Americans unsure of how to meet their obligations."
"The Digital Assets Voluntary Disclosure Program Act creates a clear pathway for taxpayers to come back into compliance without facing unnecessary barriers or prolonged disputes," Rep. Smith continued. "Representative Bean's bill is a practical solution that promotes voluntary compliance, improves tax administration, and helps taxpayers move forward with certainty while ensuring everyone plays by the same rules."
Bean's Previous Tax-Related Bills
In April, the Florida congressman was a cosponsor of the SEPTIC Act, a bill that corrects a longstanding issue in which grants, subsidies, or financial assistance provided by state and local governments to fix, maintain, replace, or connect septic tanks were partially treated as taxable income under federal law.
The bill renders this financial assistance fully tax-free, a welcome relief to millions of Americans who rely on septic tanks.
