The IRS has issued several pieces of guidance related to the Coronavirus Aid, Relief and Economic Security Act (CARES Act), including guidance relating to the carryback of net operating losses (NOLs).
These provisions of the CARES Act temporarily suspend some of the limitations and restrictions on NOLs. As a result, these changes could mean that some taxpayers would receive refunds on taxes previously paid for 2018 and 2019 taxable years.
The guidance, released April 9, addresses three separate elections relating to the carryback of NOLs permitted as a result of changes made by the CARES Act.
- Election to waive carryback period for taxable years beginning in 2018 or 2019.
- Election to waive carryback to taxable years with inclusions under Section 965 of the Code.
- Carryback of NOLs relating to taxable years straddling 2017 and 2018.
Depending on your filing classification (individual, trust, corporation, etc.) specific forms will have to be submitted. Although a six-month extension on filing NOLs forms has been granted in certain circumstances, don’t wait! Read the IRS Guidance and contact your CPA today to learn how these changes could benefit you.
Questions about changes to tax legislation and what it means to you and your business? Put our tax law experience to work for you.
Given the evolving news and updates around the spread of COVID-19 (Coronavirus), Howard, Stallings, From, Atkins, Angell & Davis remains open for business, and our offices remain staffed appropriately to meet your needs. While many of our attorneys and staff will be working remotely during the coming weeks, rest assured that we are still available to you, our phone numbers and emails are still the best way to reach us. We understand that you may have legal questions as we forge the path ahead. We remain dedicated to your success and are here for you. Let us know how we can help.
For your reference, we are compiling and analyzing state and federal legal updates here, which may effect your business. Visit our Business Legal Resource Center for updates.