IRS Closes Off Big Business Assistance Program to New Members

Chris Gaetano
Published Date:
Aug 29, 2016

The IRS has announced that its Compliance Assurance Program, which allowed large businesses to get individual help from the IRS in identifying and resolving tax issues before they become a problem, will be closed to new members due to budgetary constraints. The purpose of the program is to allow taxpayers to achieve tax certainty sooner and with less administrative burden than conventional post-file examinations.

As part of a larger evaluation of the program in light of diminished resources, no new taxpayers will be accepted into the CAP program for the 2017 application season that begins in September 2016. Only taxpayers currently in the CAP and Compliance Maintenance phases may submit applications to participate in the CAP program.  Those that are in the pre-CAP phase (where they're being evaluated for eligibility in the program) will not be accepted into the program, nor will any new applications. Current pre-CAP taxpayers, though, may remain in the pre-CAP phase while the evaluation is going on. 

CAP began as a pilot program in 2005 with 17 taxpayers and has grown to include 181 taxpayers today. In 2011, the CAP program became permanent and added the Pre-CAP and Compliance Maintenance phases. The rest of the program has remained relatively unchanged since its inception.

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