32 THE QUEENS COURIER • SEPTEMBER 26, 2019 FOR BREAKING NEWS VISIT WWW.QNS.COM
HAVE SHORT PERIOD
TO APPLY FOR IRS
Corporations that want to participate in the Compliance
Assurance Process (CAP) for the 2020 program year must apply
between Sept. 16 and Oct. 31, the IRS announced on Thursday.
This year marks the first time since 2015 that new applicants
have been allowed to apply to participate in the CAP program.
The IRS also announced expansions to the program.
Corporations that are accepted into the program can work
with the IRS to resolve tax issues before filing their tax returns.
The CAP program was developed by the Large Business and
International Division. The program accepts participants
for one year at a time and requires corporations to execute a
memorandum of understanding each year.
To qualify for the program, a corporation must:
• Have assets of $10 million or more;
• Be a U.S. publicly traded corporation with a legal requirement
to prepare and submit SEC Forms 10-K, 10-Q, and 8-K; and
• Not be under investigation by, or in litigation with, any
government agency that would limit the IRS’s access to current
To participate in CAP, corporations must adhere to CAP
program limits on the number of open years. For 2020, the
IRS expanded the list of open-year exceptions and developed
a process for new applicants that are currently under IRS
examination. If a corporation is currently under examination,
it must not have more than one filed return and one unfiled
return open on the first day of the applicant’s CAP year. For
a new applicant currently under examination to be eligible to
participate, the current cycle must be closed, and the subsequent
cycle not started on the first day of the applicant’s CAP year.
Because the CAP program requires openness and transparency
between the IRS and participants, the program is not available to
corporations that fail to exhibit cooperative behavior. Examples
of uncooperative behavior include not meeting information
document request deadlines or providing incomplete responses;
not participating in meaningful or good-faith issue resolution
discussions; not thoroughly disclosing a material issue in a timely
manner; not disclosing a tax shelter or listed transaction; not
disclosing an investigation or litigation that limits IRS access to
current corporate records; filing claims or requesting appeals
frequently; and not following the terms of the CAP program.
John Savignano is a partner with Savignano Accountants &
Advisors located at 47-46 Vernon Blvd., Second Floor, in Long
Island City. If you have any questions or require additional
information, please call John at 718-707-0955.
YOUR PARTNER IN THE
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YOUR PARTNER IN THE STRUGGLE FOR JUSTICE
JOHN J. CIAFONE ESQ.
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