No, the CAP Program does not put the IRS in the business of providing tax advice.
The Compliance Assurance Process (CAP) Program involves the IRS reviewing fully disclosed completed business transactions and determining the resulting tax consequences. The CAP Team works with the taxpayer to achieve tax compliance by resolving issues prior to the filing of the tax return. This process allows for real-time issue resolution and provides tax certainty sooner, but it does not involve the IRS providing tax advice. Instead, the IRS reviews transactions and ensures compliance with tax laws, which complements corporate governance and accountability.
Sources:
IRM Part 4. Examining Process. Chapter 51. LB&I Case Management. Section 2. LB&I Administrative Guidance
IRM Part 8. Appeals. Chapter 26. Alternative Dispute Resolution (ADR) Program. Section 1. Fast Track Settlement for Large Business and International (LB&I) Taxpayers
