In IRS Notice 2020-23 the IRS provides a list of additional returns and payments of tax that are due on or after April 1, 2020 for which filing and payment relief is provided. The listed payment obligations and return filings are now due on July 15, 2020.
IRS extends deadline for filing applications to carryback NOLs arising in 2018 and 2019.
The CARES Act contained provisions amending IRC Section 172(b)(1) to carry back any NOL arising in tax years beginning after December 31, 2017, and before January 1, 2021, to each of the five taxable years preceding the tax year of the NOL. However, the CARES Act did not amend the law extending the time for taxpayers realizing NOLs to apply for a tentative carryback adjustment of the tax liability in the carryback year and accelerate the refund of any resulting overpayments. In its Notice 2020-26, the IRS announced that it will grant a six-month extension of time to file a request for tentative carryback adjustment on Form 1045 or Form 1139 for an NOL arising in a taxable year that began during calendar year 2018 and that ended on or before June 30, 2019. These forms must now be filed by June 30, 2020. IRS Notice 2020-26.
IRS provides additional guidance regarding NOL carrybacks under the CARES Act.
The IRS has issued a Revenue Procedure providing additional guidance for net operating losses arising in 2018, 2019 and 2020. Under the CARES Act, such net operating losses may be carried back to the five taxable years immediately preceding the year of the loss. The Revenue Procedure addresses taxpayer elections to forego the carryback period, elections related to years in which foreign income is included in the taxpayer’s income under I.R.C. Section 965 and taxpayer options for net operating losses in tax years beginning before January 1, 2018, and ending after December 31, 2017. Rev. Proc 2020-24, 2020-17 IRB.