***NOTE THIS CARRYBACK RELIEF IS NO LONGER APPLICABLE***
The IRS provided guidance on how taxpayers who want to elect to waive or reduce the new provision requiring taxpayers with net operating losses (NOLs) arising in tax years beginning in 2018, 2019, and 2020 to carry them back five years (Rev. Proc. 2020-24).
The IRS also extended the deadline for filing an application for a tentative carryback adjustment under Sec. 6411 to carry back an NOL that arose in any tax year that began during calendar year 2018 and that ended on or before June 30, 2019.
Section 2303(b) of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, amended Sec. 172(b)(1) to provide for a carryback of any NOL arising in a tax year beginning after Dec. 31, 2017, and before Jan. 1, 2021, to each of the five tax years preceding the tax year in which the loss arises (carryback period) (Sec. 172(b)(1)(D)). Sec. 172(b)(3) permits a taxpayer entitled to a carryback period under Sec. 172(b)(1) to make an irrevocable election to relinquish the carryback period for an NOL for any tax year.
This is great news for Business Owners and Mark-To-Market Day Traders who might of generated a Net Operating Loss. You should consider filing NOL carry back claims going back 5 years for an immediate refund of tax paid. Feel free to schedule a consultation to discuss your situation in detail.