Checked October 10, 2026: The IRS describes current VDP requirements separately from its proposed revision announced December 22, 2025. A proposal does not establish operative eligibility or deadlines until finalized and placed into effect. VDP addresses willful noncompliance; nonwillful errors have other potential correction routes. Preclearance does not guarantee preliminary acceptance, and disclosure does not automatically provide criminal immunity.
The IRS current Voluntary Disclosure Practice requires truthful, timely and complete disclosure of willful noncompliance using Form 14457. The separate revision announced December 22, 2025 remains described by current IRS guidance as proposed; a proposal must not be presented as an implemented rule.
Current Voluntary Disclosure Requirements
- Mandatory Admission of Willfulness
The current practice requires taxpayers to acknowledge willful tax noncompliance. The IRS distinguishes intentional conduct from unintentional errors. An admission can have serious legal consequences; review eligibility and the facts with a tax attorney before applying. The practice is unavailable for illegal-source income, including income from activities lawful under state law but unlawful under federal law. A disclosure must reach the IRS before the agency begins an examination or investigation, receives third-party information alerting it to the noncompliance, or obtains directly related information from a criminal enforcement action.
- Comprehensive Narrative Disclosure
Applicants must provide a detailed narrative describing their noncompliance, the parties involved and relevant interactions with advisers. The Form 14457 instructions state that legal advice from attorneys currently representing the taxpayer in the voluntary disclosure need not be summarized. The narrative must otherwise explain the noncompliance truthfully and completely. Preparing it requires care and an understanding of the applicable tax rules.
- Part II Submission Deadline
After the preclearance letter, the IRS requires Part II of Form 14457 within 45 days. This is not a blanket deadline after preliminary acceptance for every tax return and financial document; the assigned civil examiner requests documents separately. A one-time 45-day extension may be granted, but failure to comply within these timeframes can result in removal from the program. Given the tight deadlines, prompt action and thorough preparation are crucial, underscoring the need for professional guidance to ensure compliance.
- Requirement for Full Payment
Current IRS VDP guidance requires payment in full or a full-pay installment agreement for taxes, interest and applicable penalties. Do not equate preclearance or preliminary acceptance with an immediate-payment deadline for every assessed amount. This stringent requirement highlights the importance of financial readiness and may necessitate strategic financial planning, areas where a tax attorney’s expertise is beneficial.
Implications for Taxpayers
Current VDP requirements call for complete disclosure, cooperation and resolution of the applicable liabilities. The proposed revision must be assessed separately; taxpayers should not assume that its proposed deadlines or penalty terms are already available. A qualified tax attorney can evaluate the facts, eligibility and risks before an application is submitted. No particular outcome is assured.
About Segal, Cohen & Landis, P.C. (SCL)
Review the relevant notices, filing history, records, and deadlines before choosing a response. Evaluate professional assistance according to the facts, applicable law, and agreed scope of representation.
Services Offered
- Back Taxes: Evaluating outstanding tax debts and available IRS payment or collection alternatives according to eligibility and the facts.
- IRS Audit Representation: Providing expert guidance and representation during IRS audits to protect clients’ rights and interests.
- Wage Garnishment and Levy Relief: Evaluating available release or collection alternatives according to eligibility and the facts, without assuring release or financial stability.
- Offer in Compromise: Evaluating whether an offer may be available under the applicable rules; IRS acceptance and a reduction in liability are not guaranteed. This general collection option does not replace the VDP payment requirements described above.
- Unfiled Tax Returns: Reviewing overdue returns and the steps needed to come into compliance. Filing late does not itself eliminate applicable penalties.
Why Choose Segal, Cohen & Landis, P.C.?
- Review the relevant notices, filing history, records, and deadlines before choosing a response. Evaluate professional assistance according to the facts, applicable law, and agreed scope of representation.
- Review the relevant notices, filing history, records, and deadlines before choosing a response. Evaluate professional assistance according to the facts, applicable law, and agreed scope of representation. Related resources: Expert Attorneys:.
- Representation Arrangements: Before retaining counsel, confirm who will handle the matter, the agreed services, fees and communication arrangements.
- Location and Availability: Contact the firm to confirm availability and whether it can represent you in the relevant matter and jurisdiction.
Contact Us
If you are facing tax issues or considering the IRS Voluntary Disclosure Practice, contact Segal, Cohen & Landis, P.C. to discuss a consultation. Confirm the terms, availability and scope of representation before sharing sensitive information or relying on a proposed course of action.
- Phone: (310) 285-3999
- Email: info@scltaxlaw.com
Tax issues can be difficult to manage. Review your notices, records and deadlines with suitable professional assistance, and make decisions based on the applicable rules and your circumstances. Legal representation does not guarantee a particular tax or financial result.
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Segal, Cohen & Landis, P.C. — Beverly Hills. Serving clients nationwide.
Samuel Landis, Esq.
LL.M. (Tax) · Selected to Super Lawyers®
Sam Landis is a Beverly Hills IRS tax attorney specializing in IRS collection defense, audit representation, and international tax compliance for foreign nationals and US expats.