Make sure you understand these new changes by the IRS.
The form's revision covers more than just virtual currencies. According to the IRS, other updates and additions to Form 14457 include a new penalty structure for employment tax and estate and gift issues; a checkbox for the inability to pay in full; and a notice that the agency will now accept all parts of this form through fax to reduce mailing and processing times.
"The updates reflect input from practitioners and stakeholders and take into account trends in the type of financial asset that taxpayers hold," the IRS explained.According to the IRS, thousands of taxpayers have used the voluntary disclosure form since it was created in order to get into compliance with tax laws and to avoid potential criminal charges.
When submitting Form 14457, it must be timely, accurate, and complete. And taxpayers are required to cooperate with the IRS in determining the correct tax liability and making full payment. If you are unable to make this payment in its entirety up-front, you are required to disclose this and submit a proposed payment arrangement to the IRS.
To be clear, not every tax mistake will warrant a voluntary disclosure submission."Taxpayers who did not commit any tax or tax-related crimes and wish to correct mistakes or file delinquent returns should consider other options available to comply with their tax and reporting obligations," the IRS explained."The IRS encourages taxpayers to consult with professional tax or legal advisors in determining which option is the most appropriate.
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