CARES Act corporate tax provisions – in historical context


Authored by RSM US LLP

This article first appeared in AIRA Journal.

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The corporate tax provisions of the Coronavirus Aid, Relief and Economic Security (CARES) Act are designed to provide taxpayers with substantial countercyclical fiscal stimulus. The CARES Act will generally be most beneficial to taxpayers with losses in 2018, 2019 and 2020 tax years who have sufficient carryback potential to prior years.

Many of the provisions in the CARES Act are temporary and can create unexpected consequences as they variously interact with different sections of the Internal Revenue Code. Taxpayers should carefully model alternative scenarios to determine which elections, carrybacks, amended returns, depreciation methods and other options will produce the most optimal (or perhaps least worst) result.

Download the article to learn more on CARES Act tax provisions relating to C corporations and the historical context for the changes contained in the legislation.