The Internal Revenue Service plans to release more streamlined resolution standards in October that provide penalties for certain types of bond-related tax violations that issuers report under the IRS' voluntary closing agreement program.
The standards will become part of Section 7.2.3 of the Internal Revenue Manual used by IRS agents and will take effect upon their release. The IRS will use these standards for recommended penalties if issuers that qualify for the VCAP request them. If an issuer in the VCAP thinks a more lenient penalty should apply than the standard one, it can request this. But any other penalty than the standard one would have to be approved by IRS senior management.