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IRS Releases Guidance to Allow Partnerships to Amend 2018 and 2019 Tax Returns and Benefit from Bonus Depreciation Changes in CARES Act

Wednesday, April 8, 2020 - 11:00AM

The Internal Revenue Service today released Rev. Proc. 2020-23, which allows partnerships to amend 2018 and 2019 tax returns, in some circumstances, in order to take advantage of bonus depreciation changes in the Coronavirus Aid, Relief and Economic Security (CARES) Act as well as any other tax attributes to which the partnership is entitled by law. The CARES Act included a technical correction to retroactively allow qualified improvement property to qualify for 100 percent bonus depreciation and make other changes. Owners of low-income housing tax credit (LIHTC) properties can take advantage of the change and amend their 2018 tax return upon receipt of IRS Form 8609. The amended tax return replaces any prior return (including any administrative adjustment request filed by the partnership), if the taxpayer files an amended return for 2018 by Sept. 30. To be eligible to file an amended return for 2018 or 2019 tax return, the partnership had to have filed the original tax return and furnished K-1s before April 8.

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