What is the Voluntary Disclosure Policy with the IRS?
A Voluntary Disclosure Policy is an internal program that is not an official IRS policy, but a program the IRS has which allows taxpayers to voluntarily disclose errors or deficiencies prior to the IRS initiating a criminal investigation against them. Under this program, generally the IRS will not prosecute and expects the taxpayer to make an effort to pay taxes, penalties and interest owed. While geared toward relief from criminal action, the IRS may still take civil action as deemed necessary against the taxpayer for collection purposes.
