As the Biden Administration and Congress work toward enacting COVID-19 relief legislation in the coming weeks, there is a large group of Congressional Democrats pushing to retroactively repeal the expanded net operating loss (NOL) and excess business loss (EBL) relief provisions enacted as part of the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act. This action comes notwithstanding the fact that there was bipartisan agreement to include these provisions since they provide impacted businesses with an invaluable source of liquidity.

Earlier this month, 120 House and Senate Democrats, including several members of the House Ways and Means Committee and the Senate Finance Committee, sent a letter to House Speaker Pelosi and Senate Majority Leader Schumer advocating for the retroactive repeal of the expanded NOL and EBL relief provisions. Even before the potential for such retroactive repeal was raised, taxpayers were utilizing the IRS Form 1139 "quickie refund" process to secure their refunds under these provisions. However, there has been significant frustration with delays in the processing and receipt of these refunds. Last week, we held a webinar with the IRS Deputy National Taxpayer Advocate to discuss ways taxpayers can expedite their refunds.

The threat of retroactive repeal of the underlying NOL and EBL provisions has only increased the stakes in filing for and securing these refunds as quickly as possible. Impacted taxpayers now find themselves in a race to file their NOL and excess business loss refund claims and receive them in advance of any retroactive repeal of these provisions. #TaxTake

Upcoming Speaking Engagements and Events

On March 3, Jorge and Marc will present Floyd's Panel: Legislative Update, and on March 5, Loren will speak on the International Tax Policy - New Administration, New Direction? panel at the Federal Bar Association's 45th Annual Tax Law Conference.

In The News

Jorge and Marc joined Loren and Steve Dixon for the episode "Tax Legislation in the New Congress" of the tax break podcast to discuss the prospects and content of future tax legislation.

The information contained in this communication is not intended as legal advice or as an opinion on specific facts. This information is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. For more information, please contact one of the senders or your existing Miller & Chevalier lawyer contact. The invitation to contact the firm and its lawyers is not to be construed as a solicitation for legal work. Any new lawyer-client relationship will be confirmed in writing.

This, and related communications, are protected by copyright laws and treaties. You may make a single copy for personal use. You may make copies for others, but not for commercial purposes. If you give a copy to anyone else, it must be in its original, unmodified form, and must include all attributions of authorship, copyright notices, and republication notices. Except as described above, it is unlawful to copy, republish, redistribute, and/or alter this presentation without prior written consent of the copyright holder.