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
© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.