Bloomberg Tax
April 15, 2020, 8:46 AM

Companies Mining the Tax Code, Old IRS Guidance to Stay Afloat

Lydia O'Neal
Lydia O'Neal
Reporter
David Hood
David Hood
Reporter

Corporations and their advisers are eyeing overlooked IRS guidance and elements of the tax code to boost their cash flow during the economic downturn.

The coronavirus pandemic has left companies scrambling for cash in an effort to stay afloat and avoid mass layoffs, and they are increasingly considering shifting around deductions and income to get that money—in the form of refunds from the IRS. This effort to boost liquidity involves leveraging the latest stimulus law (Public Law 116-136), known as the CARES Act, in tandem with tax code quirks, according to tax professionals at major law and ...

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