Rev. Proc. 2021-14: Special elections for taxpayers with Farming Loss NOLs

The IRS has released Rev. Proc. 2021-14 which prescribes when and how to make an election with regard to all NOLs of the taxpayer, regardless of whether the NOL is a Farming Loss NOL. This revenue procedure also provides that a taxpayer is treated as having made a deemed election under § 2303(e)(1) of the CARES Act if the taxpayer, before December 27, 2020, filed one or more original or amended Federal income tax returns, or applications for tentative refund, that disregard the CARES Act Amendments with regard to a Farming Loss NOL. This revenue procedure further prescribes when and how to revoke an election made under § 172(b)(1)(B)(iv) or § 172(b)(3) of the Code to waive the two-year carryback period for the farming loss portion of a Farming Loss NOL incurred in a taxable year beginning in 2018 or 2019.

See Rev. Proc. 2021-14 by clicking here.

See CARES Act Section 2303(e)(1) by clicking here.

See IRS Code Section 172 by clicking here.

See more information on Rev. Proc. 2021-14 by clicking here.

Posted by Jessica Ji, Associate Editor, Wealth Strategies Journal.