Rules for Tax Law’s Curb on Loss Offsets Under White House Review (2)

Companies’ use of net operating losses to whittle their effective tax rates has had critics up in arms, and the White House is now reviewing IRS rules for a 2017 tax law provision meant to curb the practice.

The provision contains a drafting error that predominantly hurts struggling retailers, but the agency isn’t likely to fix it given that it said dealing with another drafting error wasn’t within its authority. Tax professionals don’t expect the package of regulations to be very large, but hope it addresses situations in which companies are trying to simultaneously write off losses from different periods ...