According to Woofun AI, the US Congress is advancing the Digital Asset Tax Certainty Act (H.R. 10357), which aims to provide a compliance channel to reduce fines for unsuspecting crypto investors. The core of the bill is to establish a special voluntary disclosure mechanism to allow taxpayers to correct past violations by paying back taxes and interest, thus avoiding severe punitive measures.
On September 16, the US House Fundraising Committee passed the bill with 38 votes in favor and 5 against. Although the bill still needs to be voted on by the House of Representatives and the Senate and signed by the President before it can take effect, its legislative process has attracted great attention from the industry. Andrew Gordon, executive director of the Digital Asset Tax Action Group, pointed out that this is a major adjustment that can help a large number of ordinary taxpayers, but currently there is little attention. US crypto investors are entering the first filing season after exchanges report crypto earnings to the US Internal Revenue Service (IRS). The new regulations allow the IRS to more fully grasp users' crypto transaction records.
Gordon said that while this new set of regulations can simplify future filing, it cannot cover the tax legacy issues left over many years before the new regulations were implemented. Over the years, a large number of investors have made false declarations.” He said that the current system does not provide a predictable set of solutions for taxpayers who have no intention of making mistakes to settle their tax debts.” Today, once crypto investors discover that their crypto asset declarations are omitted or not declared, there is no proper way to remedy them.” Many people only realized after a few years that they had misunderstood the tax rules for cryptocurrency transactions or how to declare transactions across multiple platforms.
Sharon Yip, a certified public accountant and founder of Crypto Tax Advisors, said that it is very common for ordinary crypto investors to make filing mistakes. Based on her firm's experience, some clients did not declare crypto transactions and mistakenly think they only need to pay taxes when withdrawing fiat currency.” There is currently no standardized process to provide predictable penalty standards and clear solutions for crypto investors that are not subjective or intentional.” Sharon Yip told this magazine. She believes that this special crypto plan can “fill this gap”, provide a fixed correction window, lower and predictable fines, and taxpayers who voluntarily file will have greater certainty.
According to data compiled by Woofun AI, the 2026 report jointly released by CoinTracker and Coinbase (COIN.US) shows that only 49% of users can correctly understand that selling crypto assets is a taxable act, highlighting a huge gap in public awareness.
Under Section 502, taxpayers are generally required to file an amended return within 24 months of the establishment of the plan. The Act establishes two sets of penalty schemes. Taxpayers who swear to prove that their violation was not fraudulent or subjective or intentional can enjoy a lower level of fines. If you file a return within the first 12 months of the plan's launch, the annual tax difference will be 0% for the portion of the tax difference up to $25,000, and the penalty for the excess portion is 5%. Taxpayers who are unable to issue this affidavit will be fined 25% for the portion up to $25,000 and 40% for the excess;
If you miss the first installment window, the penalty rate will increase further. At the same time, taxpayers are exempt from some civil penalties. For tax issues that have completed compliance disclosure and fall within the scope of this provision, even if the taxpayer is unable to issue this affidavit, the relevant disclosure information will not be handed over to criminal investigation.
However, false oaths are punishable by perjury, and Sharon Yip advises inaccurate taxpayers to seek professional assistance. The IRS's current voluntary disclosure mechanism is intended to help taxpayers who intentionally violate tax laws and are at criminal risk. For taxpayers who simply made an error, although it is currently possible to file an amended return, the penalty criteria are not as clear as the special cryptographic plan proposed by section 502 of the Act. The US Treasury Secretary is authorized to establish a voluntary digital asset disclosure program within 12 months after the law comes into effect. Eligible taxpayers can rectify past digital asset-related tax irregularities by filing an amended return to make up unpaid taxes, interest, and penalties.
The current state of market perception shows that lack of compliance guidelines is the main cause of reporting errors. Yip advises taxpayers to first sort through all transaction records of all exchanges and wallets, confirm the tax year that needs to be corrected, and then assess whether their mistakes were unsubjective. Clause 502 is beneficial to a large number of US crypto users. According to the 2026 report published jointly by CoinTracker and Coinbase, only 49% of users can correctly understand that selling crypto assets is taxable.
This data alert shows that as regulatory transparency increases, investors must shift from reactive responses to active compliance. This is a key step in the US crypto tax system's refined governance following the implementation of new exchange data reporting regulations. The aim is to reduce compliance costs for ordinary investors through a clear legal framework while curbing malicious tax evasion.