KPMG report: Practical guide to tax credit ordering and usage rules
Practical guide to tax credit ordering and usage rules
Understanding and applying the Internal Revenue Code rules for ordering and usage of the many federal income tax credits has always been important, but is now even more important because of recent changes to the Code made by the "Coronavirus Aid, Relief, and Economic Security Act" (CARES Act).
The Code includes a wide variety of income tax credits that can help reduce, or fully satisfy, the income tax obligations of taxpayers, as well as the payroll tax obligations of taxpayers and, even simply result in a net payment from the government to the taxpayer. These credits have many rules regarding the timing of when, in what order, and how much of the credits can be used (or carried forward or backward).
Read an October 2020 report [PDF 247 KB] prepared by KPMG LLP: What’s News in Tax: Practical guide to tax credit ordering and usage rules
© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained 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.