Close
Close

IRS expands CAP program for compliant taxpayers

RFP
Tax Hot Topics newsletterThe IRS Large Business and International (LB&I) division announced on Sept. 12 that it would allow for new applicants to the compliance assurance process (CAP) program.

The CAP program is designed for generally compliant taxpayers, and employs real-time issue resolution through cooperation between the IRS and a taxpayer. Established as a pilot program in 2005, CAP became permanent in 2011. In 2016, the IRS announced that it would no longer accept new applicants. Some taxpayers expressed concern that CAP, which provides an avenue for pre-filing issue resolution by large taxpayers, would come to an end in an era of increasingly strained IRS budgets.

In 2018, the IRS announced that it would accept applications from existing participants, and the latest announcement allows for new applicants. To be eligible to apply for CAP, taxpayers must be publicly traded corporations with audited financial statements, have assets of $10 million or more, and not be under investigation by or in litigation with any government agency that would limit the IRS’s access to current tax records.

Contacts
David Auclair
National Managing Principal
Washington National Tax Office 
T +1 202 521 1515

Shamik Trivedi
Managing Director
Washington National Tax Office 
T +1 202 521 1511

Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.