On The Hill

Proposed Legislation

1. The Coronavirus Help and Response Initiative Through Year (CHARITY) 2022 Act, introduced by Rep. Mark Walker (R-NC) would allow above-the-line charitable contribution deductions for individuals who don’t itemize deductions.
2. 3516, the Emergency Family Relief Act of 2020, introduced by Sen. Josh Hawley (R-MO) would create an emergency family relief credit to be given on a monthly basis to each citizen residing with a qualified dependent child, which would start phasing out with joint incomes higher than $100,000.
3. 3539, the Telehealth Expansion Act, introduced by Senate Finance Committee member Steve Daines (R-MT) would exempt telehealth and other remote care services from certain high-deductible health plan rules.
4. 3542, the COVID-19 Earned Income Act, introduced by Senate Finance Committee member Sherrod Brown (D-OH) would allow taxpayers to substitute earned income for that of preceding years for purposes of receiving the earned income or child tax credits during the coronavirus pandemic.
5.  3557, introduced by Sen. Rand Paul (R-KY) would eliminate required minimum distribution rules under certain tax-favored retirement plans, as well as modify eligible rollover distributions.

IRS Release Guidance on NOL Limits

In response to Congress extending certain filing deadlines in the latest coronavirus relief package, the Internal Revenue Service (IRS) has issued guidance for companies seeking refunds by carrying back their losses to more profitable years.

On Thursday (Apr. 9), the IRS issued Notice 2020-26, extending the deadline for corporations and pass-through entities to file for tentative refunds for carrying back losses stemming from tax years that started during the 2018 calendar year and ended by June 30, 2019, by six months.^[2] 

Additionally, the IRS released Rev. Proc. 2020-24, which outlines procedures businesses disregarding repatriated foreign profits that would normally count as income in earlier periods. It also outlines how companies can forego carrying losses back and choose instead to carry them forward to offset profits in future years.

Widespread delays in loss refund processing times are anticipated due to IRS closures and high rates of filing.

References

^[1]Bolton, Alexander “Democrats ramp up talks with Mnuchin on next COVID-19 relied deal” The Hill, 9 Apr. 2020. https://thehill.com/homenews/senate/492019-democrats-ramp-up-talks-with-mnuchin-on-next-covid-relief-deal

^[2]O’Neal, Lydia “IRS Issues Guidance for Rollback of 2017 Tax Act Loss Limits (1)” Bloomberg Tax, 10 Apr. 2020 https://news.bloombergtax.com/daily-tax-report/irs-issues-guidance-for-rollback-of-2017-tax-act-loss-limits