A Treasury Inspector General for Tax Administration (TIGTA) audit found that compliance efforts are needed to address refund claims based on net operating losses (NOLs) reported on Form 1139, “Corporation Application for Tentative Refund.” The CARES Act allows taxpayers with an NOL in a taxable year beginning in 2018, 2019 or 2020 to carry that loss back to each of the five preceding years. TIGTA found that during a one-year period, 17,537 taxpayers submitted Form 1139. Despite the large volume of Forms 1139 submitted, the returns selected for audit represent only a relatively low percentage of NOL tax years claimed. Read the audit: https://bit.ly/3B0tHbT
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