The Compliance Assurance Program
Please prepare a response to the following post:
The Compliance Assurance Program (CAP) is designed to help larger corporate taxpayers with improving their tax compliance (IRS, 2022). The program does this by auditing in real time with different resources (IRS, 2022). A team that works with the IRS and the taxpayers work together to resolve these issues.
In my opinion I do believe that the CAP program is more beneficial for the taxpayers than waiting a few years to get audited. This method saves a lot of time and resources. It would avoid the 2–3-year delay in which the employees would need to review old records to try and remember the details of the issue. It makes it much more difficult when there are different employees and now the current team has to try and make sense of what any previous employees did. If the auditing is done in real time, it would also help to ensure that transactions are being accounted for properly. The employees would fine themselves more motivated to double check their work. In addition, resolving any possible tax issues before tax returns are filed helps to save the taxpayer/larger corporation money on any possible interest and fees to be owed in case of an amendment.
The Compliance Assurance Program
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I agree that the CAP program saves a significant amount of time and resources. It would eliminate the two-three-year wait in which personnel would have to analyze old records to recall the issue's specifics. The program is only accessible to taxpayers with assets of $10 million or more, the corporation must be traded publicly, and the firm cannot be engaged in litigation or under scrutiny by the IRS or other tax bodies. As a result, not all taxpayers are eligible for the CAP program. The progr...