On 8 September 2026, the IRS announced the opening of the application period for the 2027 Compliance Assurance Process (CAP) program (IR-2026-107). CAP is a voluntary, real-time audit alternative for large corporate taxpayers that replaces traditional post-filing examinations with continuous, issue-focused collaboration throughout the tax year. Applications are due by 30 October 2026. The program aims to reduce tax administration burden, increase certainty, and foster cooperative compliance between the IRS and corporate taxpayers with assets of $10 million or more.
Key Takeaways
- Real-Time Issue Resolution: CAP participants work with a dedicated IRS team to resolve potential tax issues before filing, significantly reducing the risk of post-filing adjustments and penalties.
- Eligibility and Commitment: Corporations must have $10 million or more in assets, file Form 1120, and commit to transparency, including providing access to relevant books, records, and personnel.
- Strategic Benefits for Multinationals: CAP provides early certainty on transfer pricing, cross-border transactions, and other complex international tax matters, supporting global tax risk management.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement