The AICPA has sent a letter to the IRS requesting guidance on section 461(l), also known as the limitation on excess business losses (EBLs) of noncorporate taxpayers, enacted under the Tax Cuts and Jobs Act.
IRC Section 461(l) disallows EBLs for taxpayers other than C corporations for tax years beginning after 2020 and before 2029. The limitation has broad applicability and the potential to impact a wide range of taxpayers.
The AICPA’s letter includes recommendations to help the IRS deliver practical guidance that would be helpful to both taxpayers and tax practitioners.