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The Internal Revenue Services  has recently issued guidance for taxpayers with net operating losses that are carried back under the CARES Act. The IRS has also provided a six-month extension of time for filing NOL forms.

Revenue Procedure 2020-24 (PDF) waives the carryback period for taxable years beginning Dec 31, 2017 and before Jan. 1, 2021. It enables taxpayers to disregard certain amounts of foreign income subject to transition tax that would normally have been included as income during the five-year carryback period. The IRS has also waived or reduced a carryback period, or revoked an election to waive a carryback period for a taxable year that began before Jan. 1, 2018, and ended after Dec. 31, 2017.

The six-month extension for NOLs, outlined in Notice 2020-26 (PDF), applies to the need to file Forms 1045 required for on individuals, trusts, and estates or Form 1139 required for corporations for NOLS for taxable years that began during calendar year 2018 and ended on or before June 30, 2019.

In addition, Revenue Procedure 2020-23 (PDF) allows partnerships to file amended partnership returns using a Form 1065, U.S. Return of Partnership Income, by checking the “Amended Return” box and issuing amended Schedules K-1, Partner’s Share of Income, Deductions, Credits, to each of its partners.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
Last modified on Monday, 13 April 2020
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