The IRS today announced the release of “model closing agreements” to resolve compliance issues in an IRS examination or under the Voluntary Closing Agreement Program (VCAP). These model agreements contain language that will generally be used by the IRS Tax Exempt Bonds (TEB) office in closing agreements relating to tax-exempt bonds.
According to information on the IRS website, all VCAP submission requests must now include a draft of the VCAP model closing agreement filled in as appropriate for the VCAP request. The IRS reported that the model closing agreements were designed to improve consistency in closing agreements for similar violations, whether the case is under the VCAP or under examination. In most instances, deviations from the operative terms of the model agreement language will require additional review.
For more information, contact the Managing Director-in-Charge of KPMG's Washington National Tax Exempt Organizations Tax group:
D. Greg Goller | +1 (703) 286-8391 | firstname.lastname@example.org
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