IRS provides Guidance under the CARES Act to Taxpayers with Net Operating Losses

IR-2020-67, IRS provides guidance under the CARES Act to taxpayers with net operating losses

Revenue Procedure 2020-24 provides guidance under section 172(b)(1) and section 172(b)(3), as amended by the Coronavirus Aid, Relief, and Economic Security Act of 2020 (CARES Act). Section 2303 of the CARES Act amended section 172 to require taxpayers with net operating losses (NOLs) arising in taxable years beginning in 2018, 2019, and 2020 to carry those NOLs back for the 5 preceding taxable years, unless the taxpayer elects to waive or reduce the carryback period. The revenue procedure also describes how taxpayers with NOLs arising in taxable years 2018, 2019, or 2020 can elect to either waive the carryback period for those losses entirely or to exclude from the carryback period for those losses any years in which the taxpayer has an inclusion in income as a result of section 965(a).

Revenue Procedure 2020-24 will be in IRB:  2020-17, dated 04/20/20

Notice 2020-26 provides relief for certain taxpayers to allow them to take advantage of amendments made to the net operating loss (NOL) provisions set forth in § 172 of the Internal Revenue Code (Code) by section 2303 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Public Law 116-136, 134 Stat. 281 (March 27, 2020).  Specifically, this notice extends the deadline for filing an application for a tentative carryback adjustment under § 6411 of the Code with respect to the carryback of an NOL that arose in any taxable year that began during calendar year 2018 and that ended on or before June 30, 2019.

Notice 2020-26  will be in IRB: 2020-18, dated 04/27/2020.

IR-2020-66, IRS extends more tax deadlines to cover individuals, trusts, estates corporations and others

Notice 2020-23; Expanded Federal tax filing and payment relief on account of Coronavirus Disease 2019 (COVID-19) emergency. The Treasury Department and IRS are providing additional relief to taxpayers, postponing until July 15, 2020, a variety of tax form filings and payment obligations that are due between April 1, 2020 and July 15, 2020.  Associated interest, additions to tax, and penalties for late filing or late payment will be suspended until July 15, 2020.  Additional time to perform certain time-sensitive actions during this period is also provided. This notice also postpones due dates with respect to certain government acts and postpones the application date to participate in the Annual Filing Season Program. This notice expands upon the relief provided in Notice 2020-18, issued March 20, 2020, and Notice 2020-20, issued March 27, 2020.

Notice 2020-23 will be in IRB  2020-18, dated April 27, 2020

 

Source: IRS.gov