New FAQs address quick refund claims for NOL carrybacks, AMT credits

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May 2020

Overview

The IRS on April 30 updated its frequently asked questions (FAQs) relating to Temporary procedures to fax certain Forms 1139 and 1045 due to COVID-19 guidance on its COVID-19 tax relief site. The new FAQs provide additional guidance to taxpayers filing Form 1120X, Amended U.S. Corporation Income Tax Return, Form 1040X, Amended U.S. Individual Income Tax Return, Form 1139, Corporation Application for Tentative Refund, and Form 1045, Application for Tentative Refund, seeking tentative refunds for net operating losses (NOLs) and alternative minimum tax (AMT) credits provided under the Coronavirus Aid, Relief and Economic Security (CARES) Act. 

The IRS historically has required Forms 1139 and 1045 to be filed only via hard copy delivered through the mail or by a private delivery service. The IRS recently modified these procedures to temporarily accept these forms via fax while its normal operations are closed due to the COVID-19 pandemic. This acceptance of faxed versions of these forms is intended as a short-term measure to assist taxpayers in quickly receiving NOL carryback and AMT credit refunds before IRS processing reopens. See our insight, IRS temporarily directs taxpayers to fax Forms 1139 and 1045 to claim quick AMT and NOL refunds, for more information.

The takeaway

The IRS is acutely aware of the high degree of interest in the processing of quick refund claims and is likely to issue further guidance in this area. We will issue insights summarizing such guidance as it becomes available.

Contact us

Kevin Brown

Principal, Tax Controversy and Regulatory Services Leader, PwC US

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