IRS Continues Comprehensive Assessment of the CAP Program
LB&I is in the process of assessing all three phases of the Compliance Assurance Process (CAP) program. The three phases are CAP, Pre-CAP and Compliance Maintenance. The assessment will include input from both internal and external stakeholders to determine if any changes are needed to the program.
The CAP assessment is necessary given today’s challenging environment of limited resources and budget constraints, combined with a business need to evaluate existing programs to ensure they are aligned with LB&I’s strategic vision.
In the meantime, 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.
Taxpayers currently in the pre-CAP phase will not be accepted into the CAP phase.
New Pre-CAP applications will not be accepted.
Current Pre-CAP taxpayers may remain in the Pre-CAP phase.
Taxpayers currently in the CAP phase may be moved into the Compliance Maintenance phase, as appropriate.
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.
See CAP FAQs for additional information regarding the three phases and general program information.