The Internal Revenue Service is giving taxpayers until the end of the year before it stops its temporary procedures for faxing in Forms 1045 and 1139 for claiming tentative tax refunds, instead of mailing them, which it has allowed as part of its response to the COVID-19 pandemic.
In April, the IRS began allowing taxpayers to file both forms by fax while many IRS employees worked remotely and were unable to process the mail.
Atul Tandon serves as CEO of Opportunity International, a Chicago-based international NGO that designs, delivers and scales innovative financial solutions to help families living in poverty build sustainable livelihoods. The NGO reached over 18 million people last year, supporting individuals and families experiencing extreme poverty in Sub-Saharan Africa, Asia, as well as Central and South America. As a global executive for Citibank, Tandon pioneered personal banking solutions in India and grew Citi's global consumer networks to more than 146 million accounts with a presence in over 100 countries.
Rafael Bernard, CFP, MSFP, is an alumnus of Kansas State's financial therapy program and Bentley University's financial planning program.
He has experience researching financial literacy, designing financial therapy-driven client activities, and leveraging experiential learning to build financial wellness curricula.
Brandon Ellison is the founder and CEO of Quility. He was born in Birmingham, Alabama and earned a Bachelor of Science degree in Accounting from the University of Alabama in 2000. Following graduation, he pursued work as a musician in Crested Butte, Colorado. In 2001, upon moving to Asheville, North Carolina, he acquired his insurance license and established a career as a life insurance agent. In 2002, Mr. Ellison met Casey Watkins while they were working as agents for the same company; the two established a friendship as well as a healthy rivalry that drove them both to grow into two of the top managers in that company.
Through their experience as insurance agents, they recognized an opportunity to elevate the industry's business model by reshaping the relationship between agents and their respectful uplines. Founded in their belief that what benefits individuals will ultimately benefit the whole, they envisioned a model in which the wellbeing, growth and financial success of agents would take the forefront. They launched Symmetry Financial Group in 2009 to translate their vision into reality, and in the 12 years since have transformed Symmetry into the modernization of the new company, Quility, with a revenue hitting over $70 million.
Ellison still enjoys playing the guitar. He also loves long hikes in the beautiful Blue Ridge Mountains with his wife, Meredith. They have three children, Addie Ruth, Levi and Woods, that keep their home and calendars full and abundant.
An individual, estate or trust can file Form 1045, Application for Tentative Refund, to apply for a quick tax refund resulting from the carryback of a net operating loss, the carryback of an unused general business credit, the carryback of a net section 1256 contracts loss, or an overpayment of tax due to a claim of right adjustment under section 1341(b)(1) of the Tax Code.
Corporations (other than S corps) can file Form 1139, Corporation Application for Tentative Refund, to apply for a quick refund of taxes from the carryback of a net operating loss (or a loss from operations of a life insurance company), the carryback of a net capital loss, the carryback of an unused general business credit, or an overpayment of tax from a claim of right adjustment under section 1341(b)(1).
The CARES Act, which Congress passed in March in response to the coronavirus crisis, included some provisions allowing companies to carryback their net operating losses for five years and file refund claims, giving them a quick capital infusion in the midst of the pandemic. Taxpayers with a net operating loss arising in a tax year starting in 2018, 2019 or 2020 can carry that loss back to each of the five preceding years unless the taxpayer elects to waive or reduce the carryback. The law also allows a carryback for a two-year period of NOLs for a tax year that began in 2017 and ended during 2018.
Another section of the CARES Act modifies the credit for prior-year minimum tax liability of corporations, including to accelerate the recovery of remaining minimum tax credits of a corporation for its 2019 taxable year from its 2021 taxable year and to allow a corporation to elect instead to recover 100 percent of any of its remaining minimum tax credits in its 2018 taxable year. In April, the IRS began allowing taxpayers on a temporary basis to fax in Forms 1045 and 1139 to expedite the tax refund process.
However, on Wednesday, the IRS added an entry to its Frequently Asked Questions page describing the temporary procedures to say the procedure will end on Dec. 31, 2020. After midnight on New Year’s Eve, the fax numbers will no longer be operational. The IRS noted that the end of the faxing process is independent of any filing due dates. For example, the last day to file Form 1139 electing to take the 100 percent refundable minimum tax credit in 2018, is Dec. 30, 2020.
“Additionally, if you file one application for a tentative refund and claim both the NOL carryback and the minimum tax credit at the same time, you must file the application by the earliest applicable deadline,” the IRS noted.
