Tax News Update    Email this document    Print this document  

October 2, 2020
2020-2387

IRS LB&I adds compliance campaign on limitations on CNOL carryovers

The IRS Large Business and International Division (LB&I) has announced one new compliance campaign addressing limitations on consolidated net operating loss (CNOL) carryovers. Generally, limitations on CNOL carryovers apply to situations involving an acquisition or disposition of a member of a consolidated group. The LB&I campaign addresses noncompliance with (1) two limitations on groups that acquire a member with an NOL carryover and (2) one limitation on a group with a CNOL or CNOL carryover that disposes of a member to which part of the CNOL is attributable. The campaign will be carried out through issue-based examinations.

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement