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IRS Working on Quick Corporate Refunds but Urges Patience 

Posted on May 15, 2020

The IRS is working to process corporate refund requests resulting from coronavirus relief legislation, but there are still challenges to overcome.

“Please continue to have patience with us here at the IRS,” Ken Corbin, IRS Wage and Investment Division commissioner, said May 14 during a webinar hosted by EY.

Corbin said his division is responsible for processing not only Form 1139, “Corporation Application for Tentative Refund,” but also Form 1120-X, “Amended U.S. Corporation Income Tax Return,” and Form 4466, “Corporation Application for Quick Refund of Overpayment of Estimated Tax.”

The IRS is still implementing telework capabilities for employees who are processing the refunds, Corbin said. He added that some aspects of the refund process involve employees who are voluntarily returning to work in person, and the IRS is trying to shore up staffing in that area.

The IRS issued informal guidance in April following up on an earlier announcement that it would temporarily accept faxes of quick refund claims that stem from two provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136): alternative minimum tax credits and net operating loss deductions.

Only claims that are filed on Form 1139 or Form 1045, “Application for Tentative Refund,” for individuals, trusts, and estates qualify for digital transmission, which the IRS started accepting April 17.

“It is taking us some time, but we are working through it and really trying to prioritize the processing of anything CARES Act related,” Corbin said. “That includes anything that has a refund associated with it.”

IRS Knows You Need Your Money

Corbin said the IRS understands that taxpayers urgently need the money owed. “It is our priority not just to make sure that everything in the CARES Act is implemented as quickly as possible, but also in a secure way to make sure that we get the money and the refunds to the right citizens and the right businesses,” he said.

Nikole Flax, deputy commissioner of the IRS Large Business and International Division, said the fax process should help avoid the delay of the mail, but cautioned that it’s still a brand-new process and there’s a lot of work to be done. She said that to help speed it up, taxpayers should ensure their forms are accurate and that they aren’t trying to fax forms that can’t be processed that way.

Flax also said the IRS is looking at ways to streamline the Form 1120-X process, including working with staff on the Joint Committee on Taxation.

“I think at the end of the day, taxpayers should expect to see that we’re working them as quickly as we can but should recognize that it is a different process than the [Form] 1139 process, and the compliance review of [Form 1120-X] does take some time,” Flax said.

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