Temporary Procedures to Fax Certain Forms Will Stop at Year-End

The IRS is ending the temporary procedures to fax Forms 1045 and 1139 for claiming tentative tax refunds on December 31, 2020. The temporary procedures were put in place in April in response IRS employees working remotely due to the Coronavirus pandemic.

Application for Change in Accounting MethodThe CARES Act included provisions on net operating losses (NOLs) and modifies the credit for prior-year minimum tax liability of corporations.

Section 2303 makes several modifications to net operating losses, including requiring a taxpayer with a net operating loss arising in a taxable year beginning in 2018, 2019, or 2020 to carry that loss back to each of the five preceding years unless the taxpayer elects to waive or reduce the carryback; and providing a carryback for a two-year period of NOLs arising during a taxable year that began in 2017 and ended during 2018.

Section 2305 modifies the credit for prior-year minimum tax liability of corporations, including to accelerate the recovery of remaining minimum tax credits of a corporation for its 2019 taxable year from its 2021 taxable year and to permit a corporation to elect instead to recover 100% of any of its remaining minimum tax credits in its 2018 taxable year.

Only claims allowed under sections 2303 and 2305 of the CARES Act that are made on Form 1139 or Form 1045 are eligible refund claims under temporary procedures, which end at the end of the year. The fax numbers will not be operational after that date.

The end of the temporary procedures is independent of any filing due dates. If a taxpayer files one application for a tentative refund and claim both the NOL carryback and the minimum tax credit at the same time, the taxpayer must file the application by the earliest applicable deadline.

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