IRS TO EXPAND CORPORATE TAX COMPLIANCE PROGRAM
The Internal Revenue Service said Thursday that it plans to expand a six-year-old pilot program for assuring large corporations are complying with their tax obligations and make it permanent.
The program is known as the Compliance Assurance Program, or CAP. Under CAP, participating taxpayers work collaboratively with an IRS team to identify and resolve potential tax issues before the tax return is filed each year. With the major potential tax issues largely settled before filing, taxpayers are generally subject to shorter and narrower post-filing examinations.
With the CAP program growing in popularity, it is being expanded to include two additional components. A new pre-CAP program will provide interested taxpayers with a clear road map of the steps required for gaining entry into the CAP program. A new CAP maintenance program is also being introduced. It is intended for taxpayers who have been in CAP, have fewer complex issues, and have established a track record of working cooperatively and transparently with the IRS.