TEB administers the Voluntary Closing Agreement Program (TEB VCAP) to assist governmental issuers in resolving violations of the federal tax laws applicable to their tax-exempt, tax credit, or direct pay bonds (tax-advantaged bonds). Under TEB VCAP, issuers can conclusively resolve violations through the execution of closing agreements with the Service.
The primary compliance objective of the TEB VCAP resolution standards is to promote due diligence on the part of issuers and other parties to bond transactions in resolving violations of applicable federal tax laws. In furtherance of this objective, the resolution standards provide an economic incentive for issuers to timely identify violations and submit TEB VCAP requests. The primary administrative objective of these resolution standards is to streamline the closing agreement process with respect to specific violations resulting in more efficient processing of cases.
Objectives & Scope
These IRM procedures provide general information about the objectives and scope of the TEB VCAP resolution standards.
Resolution Standards for Tax Exempt Bonds
These IRM procedures describe the resolution standards for 9 specific violations of federal tax laws applicable to tax-exempt bonds.
Resolution Standards for Direct Pay Bonds
These IRM procedures describe the resolution standards for 4 specific violations of federal tax laws applicable to certain direct pay bonds.
Resolution Benefit for Issuers with Post-Issuance Compliance Procedures
These IRM procedures describe how the TEB VCAP resolution standards are modified to reduce the nonqualified period when an issuer has adopted written procedures for monitoring federal tax compliance following the issuance of its bonds.
- IRM 220.127.116.11.4 Certain Modifications to Resolution Standards Based on Timing of Discovery of Violation