Consolidated Groups of Companies Get Two Sets of Loss Rules (2)

The IRS issued temporary and proposed rules for losses used as tax breaks by groups of companies that file a single tax return.

Both deal with changes made by the third coronavirus relief law (Public Law 116-136), which allowed corporations to carry losses from 2018 through 2020 back five years, to trigger refunds of taxes they previously paid in an attempt to provide them with liquidity to weather the crisis.

• In response to the relief law, known as the CARES Act, the new temporary rules allow ...