Voluntary Disclosure

Voluntary disclosure is the process of proactively telling the IRS about intentional tax non-compliance before the IRS discovers it. The formal IRS Voluntary Disclosure Practice is intended for taxpayers whose willful conduct may create criminal exposure.

Why it matters for U.S. expats

U.S. expats may consider voluntary disclosure if they intentionally failed to report foreign income, accounts, assets, businesses, or tax returns. A timely and complete disclosure may reduce the risk of criminal prosecution, but it does not guarantee immunity or eliminate taxes, interest, and penalties.

The Voluntary Disclosure Practice is not normally appropriate for accidental or non-willful mistakes. Those taxpayers may qualify for the Streamlined Filing Compliance Procedures or another catch-up option instead.

Common questions

1. What is voluntary disclosure to the IRS?

It is a formal process for proactively reporting willful tax non-compliance to the IRS before the government discovers it.

2. Who should use the IRS Voluntary Disclosure Practice?

It is intended for taxpayers whose intentional actions may expose them to criminal prosecution for tax or tax-related offences.

3. What is the difference between voluntary disclosure and the Streamlined Filing Compliance Procedures?

Voluntary disclosure addresses potentially willful conduct. The Streamlined Filing Compliance Procedures are for taxpayers whose failure was non-willful.

4. What form is used for an IRS voluntary disclosure?

Taxpayers apply using Form 14457, Voluntary Disclosure Practice Preclearance Request and Application.

5. Can I make a voluntary disclosure after the IRS contacts me?

A disclosure is not considered timely after the IRS begins an examination or investigation or receives information revealing the non-compliance.

6. Does voluntary disclosure prevent criminal prosecution?

No. A truthful, timely, and complete disclosure may influence the IRS not to recommend prosecution, but protection is not guaranteed.

7. Do I still have to pay tax and penalties after making a voluntary disclosure?

Yes. Taxpayers must pay the tax, interest, and applicable penalties or arrange an acceptable payment plan.

8. Can U.S. expats use voluntary disclosure for missed FBARs?

Potentially. It may be appropriate when FBAR non-compliance was willful and creates criminal exposure. Other procedures may be more suitable for non-willful failures.

Related forms

• Form 14457: Voluntary Disclosure Practice Preclearance Request and Application.
• Form 2848: Power of Attorney and Declaration of Representative.
• FinCEN Form 114: Report of Foreign Bank and Financial Accounts.

When to get help

Consider professional help if:

• You deliberately omitted foreign income, accounts, assets, or entities.
• You knowingly filed inaccurate tax returns or FBARs.
• You may face civil fraud penalties or criminal exposure.
• The IRS or another government agency may already have information about your conduct.
• You are unsure whether your actions were willful or non-willful.
• You need to choose between voluntary disclosure and the Streamlined Filing Compliance Procedures.

Because voluntary disclosure can involve legal admissions and criminal exposure, advice from an experienced tax attorney may be appropriate. Bright!Tax can help assess the required tax filings and coordinate the compliance work with your legal adviser. Get started with Bright!Tax.

Related Bright!Tax guides

• Streamlined Filing Compliance Procedures
• Streamlined Foreign Offshore Procedures
• Form 14653 and catching up on U.S. taxes
• Filing delinquent FBARs

Official sources

• IRS: Voluntary Disclosure Practice
• IRS: Form 14457
• IRS: Internal Revenue Manual, Voluntary Disclosure Practice

Reviewed by

Katelynn Minott, CPA & CEO.

Last reviewed

June 2026