Compliance Stuff

On May 14, 2026, Colorado Governor Jared Polis signed into law a compromise bill that replaces the state’s landmark AI statute, the Colorado AI Act, SB 24-205. The Colorado legislature acted in response to widespread industry objections to SB 24-205 as overly burdensome and following a US District Court of Colorado order suspending enforcement of the statute for the foreseeable future. 1 The new automated decision-making technologies (ADMT) law, SB 26-189, 2 takes a fundamentally different approach to AI regulation, trading comprehensive algorithmic discrimination protections for a leaner, less burdensome documentation-and-disclosure framework. If you have been preparing for the June 2026 compliance deadline for SB 24-205, the new ADMT law is a significant course correction. Here is what has changed: The effective date has been pushed to January 1, 2027. Deployers are no longer required to implement risk management frameworks or conduct AI impact assessments. The Colorado Attorney Ge...

In a significant policy shift, the IRS has revised Form 14457, Voluntary Disclosure Practice Preclearance Request and Application, the cornerstone of its Voluntary Disclosure Practice (VDP), by removing the controversial “willfulness checkbox.” This change, effective with the July 2025 version of the form, marks a major win for taxpayers and tax professionals who have long criticized the checkbox as a deterrent to participation in the program.   In short, the removal of the willfulness checkbox from the updated VDP form incentivizes taxpayers who were previously wary about admitting that they had willfully failed to disclose information to the IRS to – after consultation with their advisors and attorneys – reconsider whether entering VDP is a viable and wise option in their situation. Background: The Role of Form 14457 Form 14457 is used by taxpayers seeking to voluntarily disclose previously unreported income or tax noncompliance in order to avoid criminal prosecution. The form op...