The Internal Revenue Service today announced the opening of the application period for the 2027 Compliance Assurance Process (CAP) 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 uses real-time issue resolution through transparent and cooperative interaction between large corporate taxpayers and the IRS. 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.
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 SEC 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. Generally Accepted Accounting Principles (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.
The CAP program allows large corporate taxpayers and the IRS to resolve tax issues in real-time, prior to filing federal income tax returns. By identifying and addressing potential issues upfront, CAP aims to improve tax compliance, increase return accuracy, and reduce post-filing audit cycles for corporations.
The application window opens on September 1, 2026, and closes on October 30, 2026. Applicants will be notified by the IRS regarding their acceptance into the 2027 tax year program in February 2027.
Applicants must have assets of $10 million or more. In addition, applicants must be either a publicly traded corporate entity required to file SEC Forms 10-K, 10-Q, and 8-K, or a privately held C corporation (including foreign-owned) that provides annual audited financial statements with an unqualified audit opinion.
No. To be eligible, applicants must not be under investigation by or involved in litigation with any government agency that would restrict or limit the IRS’s access to their tax records.
Privately held applicants must submit annual audited financial statements prepared according to U.S. GAAP, IFRS, or an IRS-approved framework, alongside unaudited quarterly financial statements. The audited statements must come with an unqualified audit opinion and its reported net income or loss must reconcile to Schedule M-3, line 4(a) (worldwide consolidated net income/loss).
Manoj Sharma is a Senior Writer on the banking team at Tax Assistant. He provides information on budgeting, bank accounts, the banking industry, and other related topics. Using original data and methodologies, he helps you identify the best financial institutions, accounts, and products tailored to your needs. Manoj holds a degree in Journalism and Political Science from Syracuse University. All articles are strictly reviewed and fact-checked by our panel of expert Chartered Accountants, including CA Devendra Saini, CA Nikhil Khunteta, and CA Ankit Goyal
