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 bonds, tax credit bonds, 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 objective of TEB VCAP is to encourage issuers and other parties to bond transactions to exercise due diligence in complying with applicable federal tax laws and to provide a vehicle to correct tax violations as expeditiously as possible. As such, unlike private letter rulings, closing agreements under TEB VCAP may not conclusively resolve matters of tax law relating to future events or actions impacting the tax-advantaged status of bonds.
IRM 7.2.3 provides procedures for TEB VCAP. Links to the various sections of this IRM relating to submission requests and case processing are organized below. Please click here to view the entire IRM. General procedures relating to TEB closing agreements are provided in IRM 4.81.6.
Objective & general matters
These IRM procedures provide general information about the objectives and scope of TEB VCAP. They also provide general information about the effect of closing agreements, how TEB VCAP impacts the selection of bond issues for examination, and special procedures for anonymous requests.
IRM 188.8.131.52 – 184.108.40.206.2 TEB VCAP Objectives, Scope & Other General Matters
IRM 220.127.116.11.3 Effect of TEB VCAP Closing Agreement
IRM 18.104.22.168.4 Audit Selection of TEB VCAP Cases
IRM 22.214.171.124.5 Special Procedures for Anonymous Requests
How to submit a request for VCAP
You must include a model closing agreement with your submission.
These IRM procedures set forth the information required to be provided by the issuer in its TEB VCAP submission request as well as the case assignment procedures.
Case resolution & closing
These IRM procedures describe the process for the resolution and closing of TEB VCAP cases.