The CARES Act allows taxpayers to carry back NOLs arising in
taxable years beginning in 2018, 2019, and 2020 to the five
preceding taxable years. Carrying back NOLs will benefit
many, but not all, taxpayers. Importantly, a taxpayer may
also waive the NOL carryback (and instead carry NOLs forward), or
exclude from the carryback period any year in which they had income
subject to the repatriation tax under Section 965 (which is imposed
at a lower rate than the regular corporate tax). Revenue
Procedure 2020-24 provides that a taxpayer making either of these
elections with respect to NOLs recognized in 2018 or 2019 must do
so by the due date (including extensions) for the taxpayer's
federal income tax return for its first taxable year ending after
March 27, 2020.
