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Does the CARES Act effect S Corps and shareholders?

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Level 3

CARES Act: Happen to be amending a 2019 1120S.  I am wondering if the CARES Act might 

enable S Corp and/or shareholders to apply some of 2020's huge loss to a profitable 2019?

Thanks

 

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Level 11

S corps don't have NOLs, so there cannot be any carryback.

Shareholders might have NOLs created when they can claim S corp losses.

** I'm still a champion... of the world! Even without The Lounge.

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Highlighted
Level 11

S corps don't have NOLs, so there cannot be any carryback.

Shareholders might have NOLs created when they can claim S corp losses.

** I'm still a champion... of the world! Even without The Lounge.

View solution in original post

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Level 3

Thank you both very much. Unfortunately that confirms what little I deduced. This fellow is currently on an OIC with IRS. Seemed to recall under the terms, he can't utilize the NOL. I'll verify.

Be well

 

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Level 15

I don't know why an OIC would preclude using an NOL carryback.


ex-AllStar
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Level 11
Level 11

Here is some info for you from IRS:

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) amended section 172(b)(1) to provide for a carryback of any net operating loss (NOL) arising in a taxable year beginning after December 31, 2017, and before January 1, 2021, to each of the five taxable years preceding the taxable year in which the loss arises (carryback period). Taxpayers may elect under section 172(b)(3) to waive the carryback period for NOLs arising in those years.

Here is link, so you can see the whole article:

https://www.irs.gov/newsroom/frequently-asked-questions-about-carrybacks-of-nols-for-taxpayers-who-h...