Voluntary Compliance Agreement Program (TEB VCAP)
To promote voluntary compliance with the provisions of the Internal Revenue Code relating to tax-exempt bonds, TEB has expanded its pre-existing voluntary closing agreement program (TEB VCAP). In expanding TEB VCAP, the Service seeks to encourage issuers, conduit borrowers and other parties to bond transactions to exercise due diligence and to attempt to correct any issuance and post-issuance infractions of the applicable sections of the Internal Revenue Code and regulations. This expansion reflects the Services continuing policy of taxing bondholders only as a last resort and TEB's desire to resolve tax-exempt bond infractions with other parties to the bond transactions.
Voluntary closing agreement requests from anonymous parties as well as requests on behalf of multiple issuers and issues are encouraged if a sufficient description of the appropriate facts and circumstances leading to the infraction are provided to the Service.
We welcome your interest in the CPM function and participation in the TEB VCAP program. We also welcome your suggestions about how we can improve the program and encourage up-front voluntary compliance. If you have any questions about the TEB VCAP or wish to discuss or submit a closing agreement request, please contact Steven A. Chamberlin, Manager CPM, by phone at (636) 255-1290, fax (636) 255-1447, or email Steven.A.Chamberlin@irs.gov.
You may also mail closing agreement requests to CPM at the following address:
Internal Revenue Service
SE:T:GE:TEB:CPM
PE – 583
1111 Constitution Avenue, NW
Washington, D.C. 20224
Additional VCAP Information
Notice 2001-60, 2001-40 I.R.B. 304
This notice provides information about a closing agreement program for tax-exempt bonds (TEB VCAP). TEB VCAP provides a mechanism whereby issuers of tax-exempt bonds who come forward on a voluntary basis can resolve violations of the Code by entering into closing agreements with the Service. Comments are requested on TEB VCAP and on how the Service can expand its efforts to encourage voluntary compliance with the Code.
IRM 7.2.3 - Part 7 (Rulings and Agreements), Chapter 2 (TE/GE Closing Agreements), Section 3 (Tax Exempt Bonds Voluntary Closing Agreement Program).
Rev. Proc. 97-15, 1997-5 I.R.B. 21
This procedure provides a program under which an issuer of state or local bonds may request a closing agreement regarding outstanding bonds which fail to meet certain requirements of sections 141 through 150 of the Code relating to use of proceeds as a result of an action subsequent to the issue date.
IRS Announces New Tax Exempt Bond Pilot Program to Mediate and Speed Up Resolution Disputes [June 3, 2003]
The Service has launched a pilot program to expedite the resolution of cases under examination in its Tax Exempt Bond organization. The IRS believes the program, which uses the services of trained mediators to help resolve factual disputes between bond issuers and the IRS, will provide significant benefits to both parties.
T.D. 9150 [Remedial actions applicable to tax-exempt bonds issued by state and local governments]
This document contains final regulations on the exempt facility bond rules applicable to tax-exempt bonds issued by state and local governments. The regulations amend provisions in the current regulations permitting remedial actions for tax-exempt bonds.
|