New NOL Rules and the Transition Tax
Between the Tax Cuts and Jobs Act and the coronavirus, there have been many unique tax situations lately. It was only a matter of time before these started to interact and cause problems. As part of the coronavirus provisions under the CARES Act, the IRS allowed for certain NOLs to be carried back. This carryback period can fall in years where the transition tax applied. As such, it has created many questions and dilemmas. To assist with this, the IRS has released a list of FAQs. However, this is not your typical FAQ. The Qs are extremely long and complicated, and with such detail it is hard to imagine all situations have been addressed. Furthermore, this illustrates a very important point. During these times, do not take any tax situation for granted. There are so many changes and provisions that any tax situation should be analyzed to see if there is relief or a better answer.