The Internal Revenue Service has overhauled
Form 14457 allows taxpayers who could be facing the threat of criminal prosecution for willful violation of tax law to voluntarily disclose information to the IRS that they failed to previously disclose. It has mostly been used in the past to disclose hidden offshore accounts, as well as estate and gift tax trusts and employment tax issues. However, even the
The IRS has now made several updates and additions to the form, including an expanded section for reporting virtual currency. The IRS Criminal Investigation division now accepts photocopies, facsimiles and scans of taxpayer signatures. Taxpayers can send the form through eFax to (844) 253-5613 to reduce mailing and processing times. Previously, Part II of this form had to be mailed. The new form also includes a penalty structure for employment tax and estate and gift issues, along with a new checkbox for inability to pay in full.
The updates reflect feedback received from tax practitioners and other stakeholders, and take into account trends in the type of financial asset that taxpayers hold.
“This is an important form and process for people who recognize it’s better to step forward and address their tax situations head-on, before facing IRS enforcement action,” said Doug O'Donnell, deputy commissioner for services and enforcement at the IRS. “The revised form includes a number of updates, and we encourage people to review the guidelines and consult a trusted tax professional.”
Thousands of taxpayers have used the form since it was first introduced to make sure they come into compliance with the tax laws. Nevertheless, those making such disclosures can still be subject to civil examination and they still have to pay all of the taxes, interest and penalties they owe.
