A voluntary disclosure has to be complete, accurate, and provable across the whole disclosure period, which is usually the most recent six years. BankXLSX converts years of bank, brokerage, and loan statement PDFs into Excel or CSV with date, description, amount, and running balance in their own columns, so every corrected figure on the amended returns ties back to a statement line. Start free, no credit card.
Last updated July 2026
Upload your bank statement
Drop file here or click to upload
PDF, JPG, PNG, BMP, HEIC, TIFF, MT940
Uploading...
The IRS Voluntary Disclosure Practice lets a taxpayer with potential criminal exposure, usually from unreported income, come forward before the IRS starts an investigation. It runs through the Criminal Investigation division and starts with Form 14457, a Part I preclearance request and a Part II application. Acceptance is not a guarantee against prosecution, but a timely, truthful, and complete disclosure is the practice the IRS follows when deciding not to recommend charges. The disclosure period is typically the most recent six years, and each of those years has to be filed or amended with income figures that are accurate and documented, which is why reconstructing income from bank statements is the core of the preparation.
The disclosure stands on the numbers. Building six years of accurate, documented income from statements is where the real work sits, and it has to be right the first time.
A disclosure period is usually the most recent six years. Each year needs every bank, brokerage, and foreign account fully captured, which is dozens of statements before any analysis begins.
A voluntary disclosure has to be truthful and complete. Guessed figures undercut it, so each year of income has to trace to deposits and receipts you can show.
Offshore account statements and older domestic ones frequently arrive as image-only PDFs or photos, which do not paste into a spreadsheet and have to be read by OCR.
Money moved between accounts and redeposited items inflate a deposit total. They have to be identified and removed so the corrected income is real, not double counted.
After preclearance, the full application and records are due within 45 days, with one 45-day extension. There is not time to hand-key years of statements line by line.
Loans, gifts, and inheritances land as deposits but are not income. Each has to be traced and pulled out, or the disclosure overstates the tax and the numbers stop tying.
Upload the statements and get the structured rows the corrected returns are built on.
Statements from every account and every year land with identical columns, so six years of data stack into one workbook instead of dozens of mismatched files.
Each credit comes out with its date, description, and amount, so income can be totaled by year and each figure points to a statement line.
OCR tuned for statement layouts reads image-only and offshore statements that will not paste, so no account is left out of the reconstruction.
Dates and amounts stay intact, so a debit in one account matches its credit in another and internal transfers can be removed from the income total.
Each row keeps the printed running balance, so every month foots and a missing statement is obvious before the package is filed.
256-bit encryption in transit, deletion on your schedule, and no reselling or sharing of uploaded financial data.
Nothing to install and no credit card to start.
Upload bank, brokerage, and foreign account statements for each account across all six years so no receipt is missed.
Tip: Include the year before the period starts so opening balances and any cash on hand are documented.
Group the deposits by year, then remove transfers, redeposited items, and documented loans, gifts, and inheritances so what remains is real income.
Tip: Tag each nontaxable deposit with its source while the statement row is still in front of you, ready for the file.
Give the reconciled per-year income to the CPA or attorney who prepares the amended returns and the Form 14457 package, with every figure traceable to a row.
Tip: Keep the workbook and the source PDFs together so any figure can be supported if the examiner asks.
The disclosure itself is legal and accounting work. The data prep underneath it is the same for everyone.
Run the disclosure under privilege and need six years of income reconstructed from statements before the Form 14457 package can be prepared.
Prepare the amended returns for the disclosure period and need clean, per-year income totals that tie to the underlying accounts.
Bring undisclosed foreign accounts into compliance and have to convert years of foreign-bank PDF statements into usable figures.
Cash businesses, crypto, and side income that never hit a return, where the correction starts by reading what actually flowed through the accounts.
The Voluntary Disclosure Practice is run by IRS Criminal Investigation for taxpayers whose exposure could be criminal, most often from willfully unreported income. It is not the same as a quiet amended return, and it does not eliminate tax, penalties, or interest. What it offers is a defined path that, done correctly, the IRS follows when deciding not to recommend prosecution. The mechanics run through Form 14457.
| Step | What happens |
|---|---|
| Part I preclearance | Submit Form 14457 Part I so CI can confirm the taxpayer is eligible to apply. |
| Part II application | After a preclearance letter, file the full application within 45 days. |
| Returns and records | Prepare amended or original returns for the disclosure period with supporting records, usually within the same window, one 45-day extension available. |
| Disclosure period | Typically the most recent six years, each filed accurately and documented. |
| Examination and payment | A civil examiner verifies the numbers and settles tax, penalties, and interest. |
The single fact that drives the data work is the disclosure period. Six years, every account, filed with figures that hold up under a civil examiner who will check them against the statements. That is a reconstruction, not a summary.
A voluntary disclosure only protects the taxpayer if it is truthful and complete. A civil examiner is assigned after acceptance and works the corrected returns like any other audit, so the income on each amended return has to trace to something. If the figures are estimates that do not match the deposits, the disclosure loses the credibility it depends on. The safe way to build them is the same one an examiner would use in reverse: convert every statement, total the real income, and remove what is not income.
The workflow is the same one used for a bank deposits analysis, run across the whole period.
This is the deposit method applied to a compliance goal instead of an audit. The full walkthrough of the analysis lives on the bank deposit analysis page, and where spending has to be reconciled against income the source and application of funds method and the net worth method come into play.
Once the per-year income is built, it feeds the rest of the engagement. Amended returns and any collection alternative use the same figures, and if the case moves into an installment agreement or offer, the bank statement converter for tax resolution feeds IRS Form 433. Start from the source documents with the bank statement converter, use running balance extraction to prove each year is complete, and speed the classification with transaction categorization. This page is data preparation only; the disclosure itself, and any legal advice, belong to the attorney or CPA running the matter.
Firms that handle disclosures repeatedly standardize the intake. Once the years reconcile you can turn the figures into clean financial statements for the file without rekeying, and teams processing the rest of a client document set at volume extract it with enterprise document OCR.
It is a path through IRS Criminal Investigation for taxpayers with potential criminal exposure, usually from willfully unreported income, to come forward before the IRS contacts them. A timely, truthful, and complete disclosure is the practice the IRS follows when deciding not to recommend criminal prosecution, though it does not remove tax, penalties, or interest.
The disclosure period is typically the most recent six years. Each of those years has to be filed or amended with accurate income, and each figure should be documented, which is why the preparation centers on reconstructing income from bank statements across all six years.
Form 14457 is the Voluntary Disclosure Practice preclearance request and application. Part I asks Criminal Investigation to confirm eligibility, and after a preclearance letter the taxpayer submits the Part II application, generally within 45 days, followed by the corrected returns and supporting records.
No. It converts bank, brokerage, and foreign account statement PDFs into accurate Excel or CSV rows so income can be reconstructed and documented for the disclosure period. Preparing Form 14457, filing the returns, and any legal advice remain the work of the attorney or CPA handling the case.
Convert every statement for every account across the disclosure period, total the deposits by year, then remove transfers, redeposited items, and documented nontaxable receipts such as loans and gifts. What remains is the income for each year, and every figure traces to a statement row for the file.
Yes. OCR tuned for statement layouts reads image-only and foreign-bank PDF statements that will not paste into a spreadsheet, so offshore and older accounts can be captured. That matters because an omitted account is exactly what makes a disclosure incomplete.
No. A quiet disclosure simply files amended returns without going through the practice, and it carries the risk that the IRS treats the omission as willful. The Voluntary Disclosure Practice is the formal route for cases with criminal exposure, which is why the numbers have to be complete and provable.
Every bank, brokerage, credit card, and foreign account statement for the disclosure period, plus documentation for any loans, gifts, or inheritances that explain deposits. The instructions to Form 14457 expect the records to be ready before the application is submitted, so the reconstruction usually happens first.
The deposit method the reconstruction uses.
Reconcile spending against income.
The asset-growth indirect method.
Feeds IRS Form 433.
Trace hidden and diverted funds.
From the same family of tools
Get started converting bank statements to spreadsheets.
USD
per month
billed as
$288 yearly
Choose speed vs accuracy when extracting
| Base AI Faster | 2,500 pages |
| Pro AI Best accuracy | 500 pages |
Scale statement conversion across your team with automation.
USD
per month
billed as
$888 yearly
Choose speed vs accuracy when extracting
| Base AI Faster | 10,000 pages |
| Pro AI Best accuracy | 2,000 pages |
Enterprise-grade bank statement conversion and controls.
USD
per month
billed as
$ yearly
Choose speed vs accuracy when extracting
| Base AI Faster | pages |
| Pro AI Best accuracy | pages |
