No, a taxpayer is not removed from the CAP program during the Bridge phase year.
The Bridge phase is a part of the CAP program designed for taxpayers whose risk of noncompliance does not warrant the continual use of LB&I examination resources. During this phase, the IRS will not accept any taxpayer disclosures, will not review any issues, and will not provide any assurance. However, the taxpayer remains part of the CAP program and is required to sign the CAP MOU, although not all sections of the MOU are applicable during the Bridge phase. The taxpayer will be considered a returning CAP taxpayer if applying for CAP for the subsequent year.
Sources:
Rev. Proc. 2021-9
Rev. Proc. 2022-9
