Tax

On April 9, 2020, the Internal Revenue Service issued procedural guidance addressing the new 5-year net operating loss (NOL) carryback period enacted as part of the CARES Act. Specifically, Revenue Procedure 2020-24 provides detailed guidance on making an election to (i) waive the carryback period for an NOL arising in a taxable year beginning in 2018 and 2019 and (ii) exclude years from the carryback period in which the taxpayer had an income inclusion from mandatory repatriation under the Tax Cuts and Jobs Act of 2017. Revenue Procedure 2020-24 also extends the deadline to file a tentative carryback adjustment to July 27, 2020 for an NOL arising in a taxable year that began before January 1, 2018 and ended after December 31, 2017. Notice 2020-26 grants a six-month extension for filing the tentative carryback adjustment for an NOL from any tax year that began during the calendar year 2018 and ended on or before June 30, 2019.

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