Cash Strapped? Consider ‘Carryback’ Refunds
We know scores of companies in the linen, uniform and facility services industry are confronting cash-flow shortages since once-thriving customers are now ailing or gone. Fortunately, recent legislation designed to help businesses survive the COVID-19 pandemic could offer laundries a lifeline, as they await an expected economic recovery later this year.
Here’s the lowdown: The Caronavirus Aid, Relief and Economic Security (CARES) Act temporarily allows companies to “carry back” Net Operating Losses (NOLs) to earlier tax years. An NOL happens when a company’s losses, combined with various deductions, exceeds its income. Under the CARES Act, your company could qualify for a refund of taxes paid in earlier, more successful years, while giving you a welcome infusion of cash right now.
July’s issue of Textile Services magazine will include a detailed article on this program and how it can help commercial launderers get a leg up on their finances with a surprise assist from (of all people!) the U.S. Internal Revenue Service (IRS). Click here to see a complete online “preview” edition of July’s article, titled “Losses—Waste Not: ‘Carryback’ Refunds Could Boost Cash Flow.”