On Monday, Feb. 27, the IRS modified the lookback period for refund claims on returns with due dates that the agency postponed because of the COVID-19 pandemic in Notice 2021-21 or Notice 2020-23.
Under Notice 2023-21, in determining the beginning of the lookback period for taxpayers with due dates postponed by Notice 2021-21, the IRS will disregard the period from April 15, 2020, to July 15, 2020, and for taxpayers with due dates postponed by Notice 2020-23, from April 15, 2021, to May 17, 2021. This will align those periods with the postponed return filing due dates.
When the pandemic hit, the IRS in Notice 2021-21 and Notice 2020-23 postponed some filing due dates for returns, but it did not lengthen the lookback period under Sec. 6511(b)(2)(A). The new extension will help taxpayers receive their refunded payments when filing a timely refund claim. Learn more.