The Compliance Assurance Process (CAP) was developed by the Large Business and International (LB&I) Division of the IRS to improve the federal tax compliance of large corporate taxpayers by employing real-time issue resolution tools and techniques. In CAP, the IRS and taxpayer work together to achieve tax compliance by resolving issues prior to the filing of the tax return. Successful conclusion of CAP allows the IRS to achieve an acceptable level of assurance regarding the accuracy of the taxpayer’s filed tax return and to substantially shorten the length of the post filing examination.
The Internal Revenue Service recently announced the opening of the application period for the 2021 CAP. The application period runs Sept. 1 to Nov. 13, 2020. The IRS will inform applicants if they are accepted into the program in February 2021.
Eligible applicants must:
- Have assets of $10 million or more,
- Be a U.S. publicly traded corporation with a legal requirement to prepare and submit SEC Forms 10-K, 10-Q, and 8-K, and
- Not be under investigation by, or in litigation with, any government agency that would limit the IRS’s access to current tax records.
More details can be found on the Compliance Assurance Process website.