How Taxpayers Can Quickly Claim Refunds of Net Operating Losses
The IRS issued guidance for taxpayers to quickly claim refunds of net operating losses for prior years. The CARES Act allows for a five-year carryback of net operating losses arising in 2018, 2019, or 2020. Taxpayers will be able to amend or modify tax returns for tax years dating back to 2013 in order to take advantage of the carryback.
Beginning April 17, taxpayers can fax eligible refund claims Forms 1139 and 1045 to the IRS to claim the refunds faster. The IRS encourages taxpayers to utilize this method when it becomes available instead of mailing the forms, as mail processing is impacted by the Coronavirus pandemic.
Read the FAQs from the IRS about these new procedures here.
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