Dear Tom:

Great post! I was unaware of the 2020 CCA.

Regarding your example about the unemployment compensation under the newly enacted Sec. 85(c), the $150,000 ceiling with respect to MAGI does take into consideration the taxpayer's filing status. See here https://www.irs.gov/forms-pubs/new-exclusion-of-up-to-10200-of-unemployment-compensation. (see the Note on page 2/3 of the printed version.)

However, the question that I have is whether a taxpayer should file an amended return to correct an error or wait for the Service to correct the error, or file a superseding return? It seems to me that the latter is mostly appropriate for reversing irrevocable elections. However, given that the Service is not processing "mailed-in" 2020 returns, this is particularly relevant for some taxpayers now that we have been granted an administrative extension of time to file.

I am aware of the superseding returns in the partnership audit rules. But your post seems to stand for the proposition that a superseding return is vastly different from an amended return. Since the Service has suggested that taxpayers not file amended returns for the unemployment compensation issue (see the link above), can a similarly situated taxpayer file a superseding return instead? In my view, well, yes but it might complicate things in the current environment. Your thoughts? This purely an academic query from one tax geek to another tax geek.


Nutty Tax Prof.

Expand full comment

Thanks for your comment. The $150,000 MAGI threshold applies to all filing statuses as the article states. On a joint return, each spouse can take the exclusion up to $10,200 if each spouse received unemployment, but the threshold remains $150,000. Re: superseding returns, a superseding return is only essential when undoing certain actions that cannot be typically done on an amended return, such as undoing a joint election.

Expand full comment