IRS suspends two FTC carryback rulings - may implicate certain CARES Act NOL carryback situations

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April 2020

Overview

The IRS, on April 17, issued Revenue Ruling 2020-08 (RR 2020-08), which suspends Revenue Ruling 71-533 (RR 71-533) and also partially suspends Revenue Ruling 68-150 (RR 68-150) while the IRS reconsiders their underlying issues.  However, the suspensions will not be applied adversely against taxpayers filing claims in accordance with those rulings during this time.  

The takeaway

While RR 2020-08 provides that taxpayers relying on the older rulings are not immediately adversely impacted, the ruling has important considerations for companies seeking refund or credit claims, especially in light of the CARES Act NOL carryback provision.  Companies may want to consider the ruling’s impact on refund and credit claims and the timing of filing amended returns in order to be prepared when the IRS completes reconsideration of its earlier positions.  In the meantime, taxpayers also should continue to monitor for updates and additional guidance on the application of the section 6511(d) provisions.

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Doug McHoney

International Tax Services Leader, PwC US

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