“QIP is now eligible for 100% bonus depreciation,” Curry-Edwards said. “A client of mine was able to file a superseded Form 1065 Partnership Income Tax Return to take additional depreciation deductions in 2019. They [otherwise] would’ve had to file an amended 2019 return or wait until their 2020 tax return was filed.”
CARES also permits a five-year net operating loss carryback for businesses. “Under prior law, the loss could only be carried forward,” Forster said. “If you previously filed a return with a loss, you could elect now to carry the loss back despite carrying the net operating loss forward under the originally filed return.”
Business superseding returns can be e-filed, but for now individual superseding returns must be filed on paper—potentially producing processing delays as many IRS centers are still running at reduced capacity due to Covid-19. Caruso advises sending the return via certified mail with return receipt requested and with the paper return marked “Superseding Return” in red at the top of the first page and on forms and schedules.
Only some state tax authorities accept superseding returns for state-level returns. “New York state, for example, accepts individual superseding returns via e-file,” Kubey said. “Department of Taxation staff members have told me that some taxpayers ... file multiple state returns until they get it right.”