The IRS today updated a set of “frequently asked questions” (FAQs) addressing how taxpayers can file applications for eligible refund claims related to the net operating loss (NOL) carryback provisions of the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act) (Pub. L. No. 116-136).
Measures included in the CARES Act provide that:
The IRS initially issued FAQs in April 2020 and then updated the FAQs on April 30, 2020. Read TaxNewsFlash
Read the FAQs (as updated June 29, 2020).
The IRS today added the following two new FAQs (text of the new FAQs is provided below):
19. Does the extension granted by Notice 2020-26 apply to consolidated groups?
Yes. (added June 29, 2020)
20. If the last date to file my Form 1139/1045 was extended six months under Notice 2020-26, and the extended due date is a date on or after April 1, 2020, and before July 15, 2020, will I also receive relief under Notice 2020-23?
Yes. Notice 2020-26 granted a six-month extension to file Form 1139 or Form 1045 with respect to the carryback of a net operating loss that arose in any taxable year that began during calendar year 2018 and that ended on or before June 30, 2019. If a taxpayer, including a taxpayer that filed a consolidated return and/or had a short tax year for the applicable loss year, satisfies the requirements of Notice 2020-26, the taxpayer will have 18 months rather than the normal 12 months, after the end of the loss year, to file Form 1139 or Form 1045. Notice 2020-23 granted affected taxpayers until July 15, 2020, to perform specified time-sensitive actions, including filing Forms 1139 and 1045. Under Notice 2020-23, a taxpayer filing a Form 1139 or Form 1045 which is due on or after April 1, 2020, and before July 15, 2020, including as a result of the relief provided in Notice 2020-26, is an affected taxpayer performing a specified time-sensitive action, and will have until July 15, 2020, to file the relevant form. (added June 29, 2020)
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.