Announces New Pilot Phase for Compliance Assurance Process Program
Introduction to the Compliance Assurance Process Program
New Pilot Phase for the Compliance Assurance Process Program
The Compliance Assurance Process (CAP) program is a voluntary program designed to improve tax compliance and reduce the burden of IRS examinations for taxpayers. The program provides eligible taxpayers with an opportunity to work with the IRS to identify and resolve potential tax issues before filing their tax returns.
The IRS has announced a new pilot phase for the CAP program, which will allow a select group of large corporate taxpayers to participate in the program. The pilot phase is designed to test the effectiveness of the program and determine whether it should be expanded to include additional taxpayers.
To participate in the CAP program, taxpayers must meet certain eligibility requirements and must submit an application to the IRS. Once accepted into the program, taxpayers work with the IRS to identify and resolve potential tax issues before filing their tax returns. This process helps taxpayers reduce the risk of tax adjustments and penalties and allows them to have greater certainty regarding their tax liability.
During the new pilot phase, the IRS will work with a select group of large corporate taxpayers to test the effectiveness of the program and identify any areas for improvement. The pilot phase will also help the IRS determine whether the program should be expanded to include additional taxpayers.
The IRS expects the new pilot phase of the CAP program to begin in January 2022 and continue through December 2022. During this time, eligible taxpayers will have the opportunity to participate in the program and work with the IRS to improve their tax compliance.
Conclusion
In conclusion, the Compliance Assurance Process (CAP) program is a voluntary program designed to improve tax compliance and reduce the burden of IRS examinations for taxpayers. The IRS has announced a new pilot phase for the program, which will allow a select group of large corporate taxpayers to participate in the program and test its effectiveness. The pilot phase will help the IRS determine whether the program should be expanded to include additional taxpayers. Eligible taxpayers can participate in the program and work with the IRS to improve their tax compliance and reduce the risk of tax adjustments and penalties.