On 23 April 2020, the United States (US) Internal Revenue Service (IRS) issued instructions and other clarifying guidance in the form of Frequently Asked Questions (FAQs) for taxpayers that are claiming refunds under the new net operating loss (NOL) carryback provisions and have Internal Revenue Code1 Section 965 transition tax liabilities during the carryback period.BackgroundIn an effort to boost taxpayer’s liquidity, the Coronavirus Aid, Relief, and Economic Security Act, P.L. 116-136 (CARES Act) allows taxpayers to carry back NOLs arising in tax years beginning after 31 December 2017, and before 1 January 2021. Under Section 172(b)(3), taxpayers may also elect to waive the carryback period...