IRS Extends More Filing Deadlines to July 15

CARES Act Updates

Also Thursday, the IRS issued guidance about tax relief tied to the $2.2 trillion stimulus package, also known as the Coronavirus Aid, Relief and Economic Security, or CARES act.

For taxpayers with net operating losses that are carried back, the IRS is:

• waiving the carryback period in the case of a NOL arising in a tax year starting after Dec. 31, 2017, and before Jan. 1, 2021;
• disregarding some amounts of foreign income subject to transition tax that normally would have been included as income during the five-year carryback period; and
• waiving or reducing a carryback period, or revoking an election to waive a carryback period, for a taxable year that started before Jan. 1, 2018, and ended after Dec. 31, 2017.

The IRS also extended the time to file Form 1045 or Form 1139 — with respect to the carryback of a NOL that arose in any taxable year that began during calendar year 2018 and that ended on or before June 30, 2019 — for six months.

Individuals, trusts and estates should file Form 1045, while corporations should complete Form 1139 .

On Wednesday, the IRS issued Revenue Procedure 2020-23, allowing eligible partnerships to file amended partnership returns using Form 1065 (U.S. Return of Partnership Income), checking the “Amended Return” box and issuing amended Schedules K-1, Partner’s Share of Income, Deductions, Credits, to each of its partners.

(Partnerships filing such amended returns must write “FILED PURSUANT TO REV PROC 2020-23” at the top of their latest returns.)