Tax refunds

A timely reminder that not all tax rules have been suspended.

The Internal Revenue Service posted a set of questions and answers Monday to help companies claim net operating losses and tax credits for prior years so they can get faster tax refunds in the midst of the novel coronavirus pandemic.

The novel coronavirus pandemic has forced the Internal Revenue Service to dramatically scale back operations late in tax-filing season, according to a new report.

Americans will start to receive stimulus payments this week, a centerpiece of the $2.2 trillion rescue package meant to provide a buffer against the coronavirus pandemic that’s shuttered much of the U.S. economy.

The decision means companies and subsidiaries will want to establish clear tax allocation agreements.

The Supreme Court vacated and remanded Tuesday an appeals court decision that found under federal common law, a tax refund due from a joint tax return generally belongs to the company responsible for the losses that form the basis of the refund, rejecting a nearly half-century-old precedent.

The justices let stand an appeals ruling that precluded a tax refund to movie producers, deferring to an IRS regulation that ended the common-law mailbox rule for refund claims, even though Clarence Thomas reversed his position on an earlier case.

The number of tax refunds issued so far this tax season is down almost 5 percent compared to last year, an indication that many Americans didn’t withhold enough from their paychecks and could face bills from the IRS.

The court is set to rule whether a parent company or a subsidiary can claim the money.

Taxpayers are feeling good about their tax-filing abilities, according to a new survey, with 89 percent indicating they feel confident they have their withholding set up correctly and 95 percent saying they're confident that they're taking all the deductions they can.