Public companies with a tax problem and at least $10 million in assets can now apply for the IRS 2022 Compliance Assurance Process program to help resolve issues prior to filing a return.
The application period runs Sept. 1 through Nov. 1. The IRS will inform applicants in February if they’re accepted.
New applicants must have assets of $10 million or more, be a U.S. publicly traded corporation with a legal requirement to prepare and submit 10-Ks, 10-Qs and 8-Ks, and not be under investigation or in litigation with any government agency that would limit IRS access to current tax records.
Taxpayers must adhere to CAP program limits on the number of open years. Historically, CAP eligibility is limited to taxpayers who don’t have more than one filed return and one unfiled return open on the first day of the applicant’s CAP year.
The IRS has recently expanded eligibility requirements to offer more flexibility for CAP taxpayers in a year when the pandemic and economic downturn might have hurt their tax posture.
The IRS created the CAP program as a pilot in 2005 to improve federal tax compliance of large corporate taxpayers and to substantially shorten the length of the post-filing examination. CAP became permanent in 2011.