Prior to the CARES Act, the TCJA stated that taxpayers with a year-end after December 31, 2017 would be disallowed NOL carrybacks (i.e., for calendar-year taxpayers, 2017 losses could be carried back). Based on the explicit language, taxpayers with a fiscal year-end of March 31, 2018, for example, would not be permitted to carryback any amount of the loss generated in such fiscal year.
Section 2203 of the Act creates a special rule to clarify that taxpayers with NOLs arising in a taxable year beginning before January 1, 2018, and ending after December 31, 2017 may apply for a carryback under Section 6411(a). Considering the tardiness of the clarification, the Internal Revenue Service will consider the application for carryback timely filed if made before July 27, 2020 (120 days after enactment of this new rule; July 25th, is a Saturday – the following Monday is July 27, 2020).