The IRS is accepting applications through Nov. 15 for its Compliance Assurance Process (CAP) program that offers large corporations a way to resolve potential tax problems before 2023 tax returns are filed.
Launched as a pilot program in 2005 and made permanent in 2011, CAP provides selected corporations with more economic certainty at potentially less cost by offering a more contemporaneous resolution to their tax issues. CAP also helps the IRS by reducing the time and expense required to identify, audit, and resolve taxpayer issues after returns are filed.
The IRS said the 2023 CAP application period closes on Nov. 15, and businesses will be notified if they have been accepted into the program in February 2023.
To be eligible to apply for CAP, 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 SEC Forms 10-K, 10-Q, and 8-K, and
- Not be under investigation by, or in litigation with, any government agency that would limit the IRS’s access to current tax records.
To be eligible to participate in CAP, taxpayers must adhere to CAP program limits on the number of open years. More information about the 2023 application is available on the IRS’ CAP webpage.