The audit CAP is different from the self-correction program (SCP) and the volutantary correction (VCP) program because it is initiated as a result of the IRS, which finds the (s) qualification defect (s) by a plan audit, not the plan sponsor who finds the error. A voluntary conclusion agreement is generally not appropriate in cases where the case is involved: the power to adopt voluntary concluding agreements for the Office of Indian Tribal Governments (ITG) is delegated to the Director of the ITF. When is it appropriate to enter into a voluntary agreement? For voluntary agreements regarding tribal government or Indian taxpayer issues, you should contact the ITG manager for your area. The IRS has implemented the Employee Plan Compliance Resolution System (EPCRS) as a way for sponsors to take corrective action to avoid the tax consequences of disqualification the plan. One of the three components of EPCRS is the Audit Closing Agreement (Audit CAP). As part of this program, the sponsor undertakes to correct the qualification error, pay a penalty and sign a conclusion agreement with the IRS. If the IRS and the plan sponsor fail to agree on the correction of the sanction or the amount of the sanction, the IRS will continue to disqualify the plan. The concluding agreement is an agreement between the IRS and the sponsor of the plan that links the tax issues mentioned in the agreement for the specified periods. Depending on the nature of the failure or failures, the IRS will discuss with the sponsor the appropriateness of the plan`s existing administrative procedures. If existing administrative procedures are not sufficient to implement the plan in accordance with the applicable requirements of the code, the final agreement may be contingent on the implementation of the procedures indicated. If, in the course of this process, it is established that there was a deliberate or intentional plan to avoid or evade payment or reporting of known taxes, the IRS reserves the right to convert the filing of the voluntary conclusion agreement into a review referral.