On September 8, 2026, the IRS issued IR-2026-107, announcing that eligible corporations may apply for the 2027 Compliance Assurance Process, or CAP, from September 1 through October 30, 2026.
What the IRS Announced
CAP is an IRS program that uses real-time, cooperative review to identify and resolve tax issues before a participating corporation files its return. The IRS launched the program in 2005 to improve compliance, provide participating taxpayers with greater certainty, and focus examination resources more effectively.
The IRS expects to notify applicants in February 2027 whether they have been accepted into the program.
Who May Apply
The IRS says a CAP applicant must have assets of at least $10 million and must not be under investigation by, or in litigation with, a government agency in a way that would limit IRS access to current tax records. An applicant must also be either:
- A U.S. publicly traded corporation required to file SEC Forms 10-K, 10-Q, and 8-K; or
- A privately held C corporation, including a foreign-owned corporation, that agrees to provide qualifying annual audited financial statements and unaudited quarterly financial statements
For a privately held applicant, the annual statements must be prepared under U.S. GAAP, IFRS, or another IRS-approved method, include an unqualified independent auditor’s opinion, and meet the IRS reconciliation requirement described in the announcement.
Preparing for the Application Period
A corporation considering CAP should review the IRS’s 2027 application highlights and full program materials before applying. The eligibility rules, financial-statement requirements, cooperation expectations, and application procedures are detailed and may require coordination among tax, accounting, legal, and financial-reporting teams.
The October 30 deadline applies to the 2027 program application period announced by the IRS. Acceptance is not automatic; the IRS will evaluate applicants and issue notifications in February 2027.
Why It Matters for Small Business Owners
CAP generally is not designed for a typical sole proprietor filing Schedule C. Its $10 million asset threshold and corporate eligibility requirements mean that most self-employed individuals and small unincorporated businesses will not qualify. The announcement is nevertheless a useful reminder that IRS compliance programs vary significantly by entity type and size.
Simple-C helps Schedule C filers keep business income and expenses organized — but it does not replace the audited financial statements or specialized tax processes required for a corporate CAP application.
This article provides general information, not tax advice. CAP eligibility and application requirements depend on current IRS guidance and an applicant’s circumstances. Confirm the details on IRS.gov.