The IRS is accepting applications until Oct. 30 for the 2027 Compliance Assurance Process (CAP) program, which allows corporations to work with the IRS during the year to identify and resolve complicated tax issues before their returns are filed to avoid potential audits afterward.
To be eligible for the CAP program, a company must:
- Have assets of $10 million or more
- Not be under investigation by or in litigation with any government agency that would limit the IRS’s access to current tax records.
- Meet one of the following requirements:
- Be a U.S. publicly traded corporation legally required to prepare and submit SEC Forms 10-K (annual report), 10-Q (quarterly report) and 8-K (current report).
- Be a privately held C corporation, including a foreign-owned corporation, that agrees to submit annual audited financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP), International Financial Reporting Standards (IFRS) or another IRS-approved method, specific to the taxpayer applying to the CAP program, as well as unaudited quarterly financial statements.
For additional information on the CAP application period for 2027, go here. The IRS will notify applicants who have been accepted into the program in February 2027.
