The IRS Large Business and International (LB&I) Division announced the start of the application period for the 2024 CAP program. The application period runs from Sept. 6 through Oct. 31, 2023. The IRS will inform applicants of whether they have been accepted into the program in February 2024.
LB&I appears committed to continuing CAP despite the significant examination resources needed to maintain the program. Unless eliminated by the current Congress, the additional funding from the Inflation Reduction Act of 2022 should help.
Much of the 2024 CAP program is the same as 2023. However, LB&I announced two important updates:
Despite the effort required to apply for and participate in the CAP program, taxpayers that participate in it have identified significant benefits. The IRS stated in its strategic operating plan that it would like to expand the program, but it is unclear from the updates made for 2024 how it intends to do that. Taxpayers interested in participating in the 2024 CAP program should consult with their tax advisers to determine whether CAP would be a good fit for them, as well as whether they are eligible to apply.
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