The Internal Revenue Service (IRS) today issued Revenue Procedure 2020-23, which allows partnerships to file amended returns for 2018 and 2019 to claim retroactive tax relief under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136).

Without the option to file amended returns, the IRS explains, "certain partnerships that already filed their Forms 1065 for the affected years generally are unable to take advantage of the CARES Act relief for partnerships except by filing Administrative Adjustment Requests (AARs) pursuant to section 6227." Today's guidance instructs eligible partnerships to file Form 1065 with the "Amended Return" box checked, and to issue an amended Schedule K-1 to each each partner. 

Global Intangible Low-Taxed Income (GILTI)

The guidance also includes guidelines for coordinating compliance with IRS Notice 2019-46 for domestic partnerships and S corporations filing under its proposed GILTI regulations. The IRS explains:

If, under Notice 2019-46, 2019-37 I.R.B. 695, a partnership has applied the rules of the proposed GILTI regulations under proposed §1.951A-5 for its taxable years ending before June 22, 2019 (Form 1065, Form 8992, U.S Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI), and Schedules K-1), the partnership may continue to apply the rules of proposed §1.951A-5 for purposes of filing an amended Form 1065 for such taxable years under this revenue procedure if the partnership furnishes amended Schedules K-1 consistent with those proposed regulations and provides appropriate notifications to its partners under the principles of section 5.01 of Notice 2019-46 within the period described in section 3.02 of this revenue procedure.

The full text of Revenue Procedure 2020-23 is posted here.

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