IRS accepting applications for 2021 CAP program

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September 2020

Overview

The IRS on August 27 announced the opening of the 2021 Compliance Assurance Program (CAP) program’s application period, which runs from September 1 to November 30. Applicants will be notified in February 2021 whether they have been accepted into the 2021 program.    

Eligible CAP applications must (1) have assets of $10 million or more; (2) be a US publicly traded corporation with a legal requirement to submit SEC Forms 10-K, 10-Q, and 8-K; and (3) not be under investigation by, or in litigation with, any governmental agency that would limit the IRS’s access to current tax records. 

For the 2021 CAP year, the IRS modified its open-year criteria; updated its requirements for the Tax Control Framework (TCF) Questionnaire; removed certain privately held or foreign-held taxpayers from the program; and established a limit on the duration of the Bridge phase.

The takeaway

The IRS has renewed its commitment to maintaining CAP and has made the program more flexible for eligible taxpayers whose operations and tax posture may have been affected by the COVID-19 pandemic. This may be an opportune time for eligible taxpayers to assess their need for certainty and apply for the 2021 program.

Contact us

Kevin Brown

Principal, Tax Controversy and Regulatory Services Leader, PwC US

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