IRS and state programs allowing taxpayers to avoid penalties and prosecution by voluntarily correcting past tax noncompliance before being contacted.
Fiore Tax Resoution
The IRS Voluntary Disclosure Program is designed to encourage taxpayers who have willfully failed to comply with their tax obligations—such as failing to report income, offshore assets, or other tax liabilities—to come forward and correct their past noncompliance. By voluntarily disclosing this information before being contacted by the IRS or becoming the subject of an investigation, taxpayers may avoid criminal prosecution. However, they must fully cooperate with the IRS and pay any taxes owed, along with applicable interest and penalties. The program is especially relevant for individuals with unreported foreign accounts or assets, and while it does not guarantee immunity from all penalties, it often results in more favorable treatment than if the IRS discovers the violation independently.
State Voluntary Disclosure Programs (VDPs) offer taxpayers an opportunity to come forward and resolve past state tax liabilities, such as unfiled returns or underreported income, in exchange for reduced or waived penalties and, in some cases, limited lookback periods. These programs are typically available to both individuals and businesses that have not been contacted by the state tax authority regarding the issue. To qualify, taxpayers must proactively disclose their noncompliance, file the necessary returns, and pay the taxes and interest owed. State VDPs are particularly beneficial for out-of-state businesses with newly recognized nexus, allowing them to mitigate the risk of significant back taxes and penalties.
Schedule a Free Consultation
A short call with one of our tax resolution specialists could change everything. Let’s talk about your options and how we can help you resolve your tax situation—for good.
Have questions about tax resolution? You’re not alone. Here are a few answers to some frequently asked questions. There are many more, so be sure to visit our FAQs page to see them all.
The process to qualify for a tax debt settlement is dependent on your personal financial situation. To find out if you qualify, schedule a complimentary consultation with one of our tax consultants, and be prepared to answer questions regarding your monthly income and expenses, additional assets to your name, and your total tax liability.
The Fresh Start program, also known as the Offer in Compromise, allows a taxpayer to settle their tax debt for a portion of the full amount owed when proven that the taxpayer is experiencing a financial hardship. If accepted, the Offer eliminates all outstanding balances with the IRS and releases any potential liens placed against the taxpayer.
While both are collection tools used by the IRS, a tax lien and a tax levy are not interchangeable terms. A lien is a claim to a taxpayer’s property due to a tax debt, while a levy is the actual action of seizing a taxpayer’s property.
Without protection in place, the IRS is legally allowed to seize your property or wages due to an unpaid tax liability.
June 22, 2025
