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.
Grace Ata, AVP of product development at Equisoft has 17+ years of experience in fintech and insurtech, Grace has led the development of several game-changing digital transformation initiatives within the automotive lending sector and Insurance and Wealth Management industries in North America. As AVP, Product Development, Grace brings a deep knowledge of the insurance distribution space and extensive network of industry subject matter experts to lead the strategy and development team working on our core Digital Insurance Agency Platform, Equisoft/centralize.
- Deep knowledge of insurance distribution and its challenges
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- Completed 60+ projects that drive operational efficiencies for financial institutions and MGAs
- Subject matter expert on data utilization including CITS/ACORD data feeds
An active member of CLIEDIS, CAILBA, NAILBA, and FundServ, Grace's exceptional talent rests on her ability to analyze & leverage industry trends to build exceptional high-value products. Passionate about operational excellence, she has successfully helped clients optimize their use of technology to accelerate efficiency, growth and digital transformation. A Bachelor of Science graduate of the University of Waterloo, Grace applies a thorough approach to product development.
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Doug Stitzer is the Global Head of Insurance for Pegasystems. Doug is responsible for building & leading the platform solution strategies, go to market messaging, product roadmap, and ISV partnerships for the Insurance vertical. Doug and his global team of industry principals carry an average of 25 years of Insurance experience and use this first-hand knowledge to help clients transform how they approach profitable growth using technology. His mission is to bring positive disruption to Insurance and bring its user experiences up to par with the automation, personalization, and digital demands driven by other industries.
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.
