What is the CAP Conclusion and Post-filing Exam

The CAP Conclusion and Post-filing Exam involves a joint post-filing examination conducted by the IRS and the taxpayer to verify that all items or issues were reported and disclosed as agreed, and to ensure there were no new items or issues on the return that were not disclosed. For tax years 2019 and forward, the process includes the following steps:

1. Post-Filing Representation Review: The IRS team reviews the taxpayer’s Post-Filing Representation.
2. Issuance of Acceptance Letter: If the items or issues were reported as agreed and no new items or issues are discovered, the IRS will issue a Full or Partial Acceptance Letter.
3. No Change Letter: If the review confirms that all items or issues were reported as agreed and no new items or issues are found, the IRS will issue a No Change Letter to conclude the exam.
4. Issue-Focused Examination: If the items or issues were not reported as agreed, or if new items or issues are identified during the post-filing review, an issue-focused examination will be conducted for those items or issues, following normal post-filing procedures.

This process ensures that the taxpayer's return is accurate and complete, and it helps to resolve any discrepancies or new issues that may arise after the initial filing.

Sources:
IRM Part 4. Examining Process. Chapter 51. LB&I Case Management. Section 2. LB&I Administrative Guidance
IRM Part 4. Examining Process. Chapter 46. LB&I Examination Process. Section 5. Resolving the Examination
IRM Part 1. Organization, Finance, and Management. Chapter 1. Organization and Staffing. Section 24. Large Business and International Division
IRM Part 4. Examining Process. Chapter 46. LB&I Examination Process. Section 1. General Information and Definitions
IRM Part 4. Examining Process. Chapter 24. Excise Tax. Section 5. Large Business and International (LB&I) Examination Program Procedures for Excise Employees