The IRS has opened the application period for the 2027 Compliance Assurance Process program for corporations.
Applications will be accepted until Oct. 30, 2026. The IRS will notify applicants in February 2027 whether they have been accepted into the program.
Launched in 2005, CAP helps large corporations improve federal tax compliance. The process enables the taxpayer and the IRS to:
- Use real-time issue resolution tools and techniques.
- Resolve issues before filing tax returns and comply with federal tax laws.
- Ensure accurate tax returns, shortening the IRS audit process.
“The program improves federal tax compliance by identifying and resolving tax issues before a return is filed, providing greater certainty for taxpayers while allowing the IRS to more effectively focus its resources,” the tax agency said in a media release on Sept. 8.
To be eligible to apply for CAP, applicants must:
- Have assets of $10 million or more.
- Not be under investigation by or in litigation with any government agency that would limit the IRS’s access to current tax records.
- Meet one of the following requirements:
- Be a U.S. publicly traded corporation legally required to prepare and submit Securities and Exchange Commission Forms 10-K (annual report), 10-Q (quarterly report), and 8-K (current report).
- Be a privately held C corporation, including a foreign-owned corporation, that agrees to submit annual audited financial statements prepared in accordance with U.S. GAAP, International Financial Reporting Standards (IFRS), or another IRS-approved method, specific to the taxpayer applying to the CAP program, as well as unaudited quarterly financial statements. The audited financial statements must contain an unqualified audit opinion from an independent auditor. Additionally, the net income or loss reported in the audited financial statements must reconcile to the Schedule M-3 line 4(a), worldwide consolidated net income (loss).
For additional information on the CAP application period for 2027, see Highlights and Updates for the CAP 2027 Application Period.
For general program information, eligibility requirements, and the 2027 application details, see Compliance Assurance Process on IRS.gov.
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