Rules for Consolidated Group Net Operating Losses Released (1)

The IRS released final rules for the application of a CARES Act change to groups of companies that file as a single entity.

The rules (T.D. 9977; RIN 1545-BP84), released Monday, follow temporary and proposed rules (TD 9900) released in 2020. Those temporary rules allowed consolidated groups with newer members to partially waive their ability to carry back losses, helping them avoid sending loss refunds to the new entities’ previous owners.

The proposed rules released concurrently in 2020, implemented changes from the 2017 tax law to Section 172, for consolidated groups ...