Amending Returns to Take the Enhanced Section 199 Deduction
By: Charles L. Telk Jr., CPA, Senior Tax Adviser | email
We feel that this ruling, coupled with IRS instructions regarding effective dates of electing the enhanced section 199 calculation, provide a clear authority to amending cooperative returns for purposes of computing and deducting the larger section 199 deduction.
Taxpayers have a window of opportunity to file an amended return– generally 3 years from the original due date of the return being amended.
Remember that section 199 first became effective for tax year 2005, so December close cooperatives have until September 15, 2009 to file an amended return. We are moving forward and are communicating with our clients regarding the effect that amended returns would have on these earlier tax years. Filing amended Federal (and State, if available) returns to claim this enhanced deduction is a great way for your cooperative to generate additional working capital and strengthen your balance sheet.
