IRS official: Virus outbreak making it hard to implement key business tax provision

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The coronavirus outbreak is making it difficult for the IRS to implement a key stimulus tax provision designed to help struggling businesses, a top agency official said today

.by redoing their previous years’ taxes to account for their current losses.The problem is that all of that is done on tax forms that are filed by mail, and office closures are making it difficult for the IRS to process them, said Sunita Lough, deputy commissioner for services and enforcement.

“Other than our one service center in Ogden, [Utah,] all of our service centers have been closed because of shelter in place,” Lough said in a panel discussion sponsored by the American Bar Association. “So forms like 1139 that are mailed to the service centers – you can see there’s a concern that the mail is not being sorted.”“If 100 people were going in the building on an average day, when everything was good – we can’t do that.

Liberalizing the rules on so-called net operating losses had been one of businesses’ top priorities in the "phase three" coronavirus stimulus package.“We understand the need for liquidity and we understand the need for taxpayers to get the refund money because it is really important at this point, but we also have to balance it to protect our employees,” she said.CORONAVIRUS: WHAT YOU NEED TO KNOWof more than $2 trillion in coronavirus relief funds.

 

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