Key Takeaways
- • A crypto investment consultant with 23 years of IRS experience—including service as the agency's first Digital Asset Subject Matter Expert—has submitted formal comments on proposed updates to the IRS Voluntary Disclosure Practice (VDP), with the comment period closing March 22, 2026.
- • The submitter, founder of Blockchain Tax Consulting, Inc., represents individual digital asset investors across trading, DeFi protocols, token launches, staking, and reward-generating activities, positioning the firm as a specialized advisor navigating evolving crypto tax compliance requirements.
- • The submission reflects insider institutional knowledge: the consultant designed and led the IRS Digital Asset Compliance Campaign, developed the agency's first cryptocurrency training curriculum for agents, and authored foundational job aids and examination techniques that shaped the Service's digital asset compliance strategy.
- • The VDP update comments signal heightened regulatory focus on cryptocurrency tax compliance, particularly for retail investors engaged in complex digital asset transactions that have historically faced IRS scrutiny and examination gaps.
Summary
Blockchain Tax Consulting, Inc., a specialized cryptocurrency tax advisory firm, has formally submitted comments to the Internal Revenue Service regarding proposed updates to the Voluntary Disclosure Practice (VDP). The submission, made on February 19, 2026, comes as the IRS solicits stakeholder input ahead of the March 22, 2026 comment period deadline.
The firm's founder, who submitted the comments, brings exceptional credibility to the VDP discussion. With 23 years of IRS experience, he served as the agency's first Digital Asset Subject Matter Expert and held responsibility for designing and leading the IRS Digital Asset Compliance Campaign—a major enforcement initiative targeting digital asset tax compliance gaps. In his tenure at the Service, he developed the IRS's foundational cryptocurrency training curriculum, instructed both new and experienced revenue agents on digital asset examination techniques and technology, and authored multiple job aids and on-the-job training materials that strengthened the agency's institutional capacity to examine digital asset transactions.
Blockchain Tax Consulting represents a client base primarily composed of individual digital asset investors engaged in multiple transaction types: centralized exchange trading, on-chain transactions, decentralized finance (DeFi) investing including liquidity pool participation, token launches and initial coin offering (ICO)-type activities, and staking and reward-generating protocol activities. This portfolio reflects the complexity and diversity of the modern retail crypto landscape, where transaction categorization and tax treatment remain areas of ongoing regulatory clarification.
The submission's timing and credibility underscore the crypto industry's engagement with IRS modernization efforts on voluntary disclosure frameworks. As regulatory scrutiny on digital asset tax compliance intensifies, insider perspectives from former agency leadership—particularly those who shaped initial enforcement architecture—carry substantial weight in shaping policy evolution. The VDP update represents a critical juncture for taxpayers seeking to remediate unreported or underreported digital asset income while minimizing penalties and exposure to criminal investigation.
The firm's founder, who submitted the comments, brings exceptional credibility to the VDP discussion. With 23 years of IRS experience, he served as the agency's first Digital Asset Subject Matter Expert and held responsibility for designing and leading the IRS Digital Asset Compliance Campaign—a major enforcement initiative targeting digital asset tax compliance gaps. In his tenure at the Service, he developed the IRS's foundational cryptocurrency training curriculum, instructed both new and experienced revenue agents on digital asset examination techniques and technology, and authored multiple job aids and on-the-job training materials that strengthened the agency's institutional capacity to examine digital asset transactions.
Blockchain Tax Consulting represents a client base primarily composed of individual digital asset investors engaged in multiple transaction types: centralized exchange trading, on-chain transactions, decentralized finance (DeFi) investing including liquidity pool participation, token launches and initial coin offering (ICO)-type activities, and staking and reward-generating protocol activities. This portfolio reflects the complexity and diversity of the modern retail crypto landscape, where transaction categorization and tax treatment remain areas of ongoing regulatory clarification.
The submission's timing and credibility underscore the crypto industry's engagement with IRS modernization efforts on voluntary disclosure frameworks. As regulatory scrutiny on digital asset tax compliance intensifies, insider perspectives from former agency leadership—particularly those who shaped initial enforcement architecture—carry substantial weight in shaping policy evolution. The VDP update represents a critical juncture for taxpayers seeking to remediate unreported or underreported digital asset income while minimizing penalties and exposure to criminal investigation.
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