July 13, 2020
The extended federal income tax deadline is approaching. The IRS postponed until July 15 many payment and filing deadlines. The CARES Act, which passed in 2020, includes some retroactive tax relief for businesses. Some provisions may affect a still-unfiled tax return or you may be able to take advantage of them on an amended return. For example, net operating losses (NOLs) that arise in tax years 2018 through 2020 can be carried back 5 years. So an NOL reported on an unfiled return may be carried back to an earlier year and allow you to recover tax paid in the carry-back year. Because tax rates were generally higher in years before 2018, NOLs carried back to those years can be beneficial.