Sec. 281. ELECTION TO WAIVE APPLICATION OF CERTAIN MODIFICATIONS TO FARMING LOSSES
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## SEC. 281 ELECTION TO WAIVE APPLICATION OF CERTAIN MODIFICATIONS TO FARMING LOSSES ###
(a)In General Section 2303 of the CARES Act is amended by adding at the end the following new subsection: > > ### “(e) Special Rules With Respect to Farming Losses > > **[**[26 U.S.C. 172 note](/us/usc/t26/s172)**]** > > > #### “(1) Election to disregard application of amendments made by subsections
(a)and
(b)> > > ##### “(A) In general > > If a taxpayer who has a farming loss (within the meaning of section 172(b)(1)(B)(ii) of the Internal Revenue Code of 1986) for any taxable year beginning in 2018, 2019, or 2020 makes an election under this paragraph, then— > > > ###### “(i) > > the amendments made by subsection
(a)shall not apply to any taxable year beginning in 2018, 2019, or 2020, and > > > ###### “(ii) > > the amendments made by subsection
(b)shall not apply to any net operating loss arising in any taxable year beginning in 2018, 2019, or 2020. > > > ##### “(B) Election > > > ###### “(i) In general > > Except as provided in clause (ii)(II), an election under this paragraph shall be made in such manner as may be prescribed by the Secretary. Such election, once made, shall be irrevocable. > > > ###### “(ii) Time for making election > > > ###### “(I) In general > > An election under this paragraph shall be made by the due date (including extensions of time) for filing the taxpayer’s return for the taxpayer’s first taxable year ending after the date of the enactment of the COVID-related Tax Relief Act of 2020. > > > ###### “(II) Previously filed returns > > In the case of any taxable year for which the taxpayer has filed a return of Federal income tax before the date of the enactment of the COVID-related Tax Relief Act of 2020 which disregards the amendments made by subsections
(a)and (b), such taxpayer shall be treated as having made an election under this paragraph unless the taxpayer amends such return to reflect such amendments by the due date (including extensions of time) for filing the taxpayer’s return for the first taxable year ending after the date of the enactment of the COVID-related Tax Relief Act of 2020. > > > ##### “(C) Regulations > > The Secretary of the Treasury (or the Secretary’s delegate) shall issue such regulations and other guidance as may be necessary to carry out the purposes of this paragraph, including regulations and guidance relating to the application of the rules of section 172(a) of the Internal Revenue Code of 1986 (as in effect before the date of the enactment of the CARES Act) to taxpayers making an election under this paragraph. > > > #### “(2) Revocation of election to waive carryback > > The last sentence of section 172(b)(3) of the Internal Revenue Code of 1986 and the last sentence of section 172(b)(1)(B) of such Code shall not apply to any election— > > > ##### “(A) > > which was made before the date of the enactment of the COVID-related Tax Relief Act of 2020, and > > > ##### “(B) > > which relates to the carryback period provided under section 172(b)(1)(B) of such Code with respect to any net operating loss arising in taxable years beginning in 2018 or 2019.” > . ###
(b)Effective Date **[**[26 U.S.C. 172 note](/us/usc/t26/s172)**]** The amendment made by this section shall take effect as if included in section 2303 of the CARES Act.
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Sec. 281
ELECTION TO WAIVE APPLICATION OF CERTAIN MODIFICATIONS TO FARMING LOSSES
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