USA Filing 1139 for 2018

[penpoint]

So the CARES act (as I understand it) will now allow NOL for TY2018 to be carried back 5 years. Has anyone seen any guidance on when it can be filed or if there is a special procedure for filing it? Thanks.

 

[Werner Reisacher]

URL of yesterday's posting on the web by the IRS

IRS provides guidance under the CARES Act to taxpayers with net operating losses | Internal Revenue Service

IR-2020-67, April 9, 2020 — The Internal Revenue Service today issued guidance providing tax relief under the CARES Act for taxpayers with net operating losses. Recently the IRS issued tax relief for partnerships filing amended returns.

www.irs.gov

 

[penpoint]

Thank you for the reference. I read Notice Notice 2020-26 and it indicates the procedure for filing Form 1139 for TY ended 12/31/2018.

So, here's the new issue:

Loss in T/Y 2018 and T/Y 2019 - Should I file the 1139 for 2018 first and then file the 2019 return and 1139 or the other way around? Or, am I overthinking it and it really doesn't matter? Thanks for any insight.

 

[Werner Reisacher]

Without having all the facts, I suggest you follow the logic of starting from the 2019 FY and work the way back to avoid having to amend filings twice