The Coronavirus Aid, Relief and Economic Security Act contains several tax provisions that are retroactive, allowing taxpayers to claim refunds to increase current cash flow.
For instance, taxpayers can claim bonus depreciation for qualified improvement property placed in service in 2018, 2019 and later years, and there is a five-year carryback for losses arising in 2018, 2019 and 2020. As a result, many taxpayers will amend their returns to take advantage of these provisions.
Partnerships subject to the centralized partnership audit procedures under the Bipartisan Budget Act of 2015 (BBA) have a limited opportunity to file amended returns and Schedules K-1 for tax years beginning in 2018 and 2019 to take advantage of the retroactive tax benefits, rather than having to file an administrative adjustment request (AAR).
Partnerships must file the amended partnership returns before Sept. 30, 2020. Learn more.