On August 27, 2018, the Internal Revenue Service (IRS) announced that the Compliance Assurance Process (CAP) program will continue, with some modifications. As we previously discussed, the IRS began an assessment of the CAP program in August 2016 to determine if any recalibration was needed.
CAP is an IRS program that seeks to identify and resolve tax issues through open, cooperative, and transparent interaction between the IRS and Large Business and International (LB&I) taxpayers prior to the filing of a return. The goal of CAP is greater certainty of the treatment of tax positions sooner and with less administrative burden than conventional post-file audits. The program began in 2005, and became permanent in 2011. Several notable taxpayers publically disclose their involvement in the CAP program. (more…)