New IRS Relief for §163(j) Elections
On March 18, the IRS issued Revenue Procedure 2026-17. This guidance allows taxpayers to withdraw certain elections that were previously treated as irrevocable.
The relief applies to taxpayers who elected to be: a real property trade or business, an electing farming business, or an excepted regulated utility trade or business. Eligible taxpayers may amend their 2022, 2023, and 2024 tax returns to revoke these elections.
