What is Walk-In CAP?

A submission for an Employee Plans Voluntary Closing Agreement, also known as a “Walk-In CAP,” is a program offered by the IRS where retirement plan issues that cannot be resolved under the Employee Plans Compliance Resolution System (EPCRS) can be corrected with IRS approval.  See https://www.irs.gov/retirement-plans/employee-plans-voluntary-closing-agreements. Similar to the Voluntary Correction Program (VCP) under EPCRS, the Walk-In CAP is voluntary, but is more informal than VCP.  Rather than a fixed fee, these submissions involve a negotiated sanction which will not be less than the VCP fee, but are less than a sanction under audit.

Walk-In CAP submissions can be an extremely valuable option to correct failures that do not fit neatly under VCP. Other corrections that do fit into VCP can be included as long as there is at least one issue that does not.

We have experience in negotiating with the IRS on these submissions, which can be more complex than corrections under VCP due to the fact that by definition these corrections are generally not addressed in extensive published guidance such as the EPCRS.