# Notice 2021-8: Relief from Addition to Tax for Underpayment of Estimated Income Tax by Individuals Affected by Amendment to Section 461(l)(1)(B)

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URL: https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2021_8

## Section

- **Citation:** Notice 2021-8
- **Heading:** Relief from Addition to Tax for Underpayment of Estimated Income Tax by Individuals Affected by Amendment to Section 461(l)(1)(B)
- **Jurisdiction:** Federal
- **Kind:** IRS notices
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Internal Revenue Bulletin / IRB 2021 / Notice / Notice 2021-8

## Text

Relief from Addition to Tax for Underpayment of Estimated Income Tax by Individuals
Affected by Amendment to Section 461(l)(1)(B)

Notice 2021-8

SECTION 1. PURPOSE
This notice provides a waiver of the addition to tax under § 6654 of the Internal
Revenue Code (Code) for underpayment of estimated income tax by individual
taxpayers, where the underpayment is attributable to the amendment to § 461(l)(1)(B) of
the Code made by section 2304(a) of the Coronavirus Aid, Relief, and Economic
Security Act (CARES Act), Public Law 116-136, 134 Stat. 281 (March 27, 2020). To
qualify for the relief provided in section 4.01 of this notice, the individual taxpayer must
fulfill the requirements stated in section 4.02 of this notice.
SECTION 2. SCOPE
.01 Limited relief for addition to tax attributable to amendment to § 461(l)(1)(B). The
relief provided in section 4.01 of this notice is limited to waiving an amount of the
addition to tax under § 6654 that is attributable solely to the CARES Act amendment to
§ 461(l)(1)(B). The relief provided does not waive the addition to tax under § 6654 that
is attributable to other CARES Act provisions, including the CARES Act amendment to
§ 172(b) of the Code. The relief is limited to individual taxpayers whose circumstance is
described in section 3.02(3)(a) of this notice and is subject to other limitations provided
in this notice.
.02 Relief available only for certain installments due on or before July 15, 2020. The
relief provided in section 4.01 of this notice applies only for the purpose of calculating
2

installments of estimated income tax of an individual taxpayer that were due on or
before July 15, 2020, with respect to the taxable year that began during 2019.
Regarding calculating the amounts of installments of estimated income tax of an
individual taxpayer due after July 15, 2020, § 6654 applies in the normal course, and
section 4.01 of this notice does not apply
ose of calculating
2

installments of estimated income tax of an individual taxpayer that were due on or
before July 15, 2020, with respect to the taxable year that began during 2019.
Regarding calculating the amounts of installments of estimated income tax of an
individual taxpayer due after July 15, 2020, § 6654 applies in the normal course, and
section 4.01 of this notice does not apply. Thus, in the case of a fiscal-year individual
taxpayer, for the purpose of calculating any required installment amount for the taxable
year that began in 2019 that is due after July 15, 2020, the individual taxpayer must
calculate the required annual payment by using the income tax figures on the original
income tax return of the taxable year that began in 2019, as if no relief under section
4.01 of this notice were provided.
.03 Relief available to certain trusts and estates. The relief described in section 4.01
of this notice is available to any qualifying estate or trust that is treated as an individual
for purposes of § 6654 and that is subject to the § 6654 estimated tax payment
requirements with respect to its income. For purposes of this notice, any reference to
an individual includes a reference to a trust or estate that is treated as an individual for
purposes of § 6654.
SECTION 3. BACKGROUND
.01 Underpayment of estimated income tax by individual.
(1) Estimated income tax and liability for addition to tax. Generally, the Code
requires taxpayers to pay Federal income taxes as they earn income. To the extent
these taxes are not withheld from wages or other income, a taxpayer normally must pay
estimated income tax on a quarterly basis. Individual taxpayers who fail to make a
3

sufficient or timely payment of estimated income tax are liable for an addition to tax
under § 6654(a).
ion to tax. Generally, the Code
requires taxpayers to pay Federal income taxes as they earn income. To the extent
these taxes are not withheld from wages or other income, a taxpayer normally must pay
estimated income tax on a quarterly basis. Individual taxpayers who fail to make a
3

sufficient or timely payment of estimated income tax are liable for an addition to tax
under § 6654(a).
(2) Quarterly payments of estimated income tax. Section 6654 provides that, in the
case of an individual, estimated income tax is generally required to be paid in four
installments, each in the amount of 25 percent of the required annual payment.
Generally, under § 6654(d)(1)(B), the required annual payment is the lesser of (i) 90
percent of the tax shown on the return for the taxable year; or (ii) 100 percent of the tax
shown on the return of the individual for the preceding taxable year (110 percent if the
individual’s adjusted gross income on the previous year’s return exceeded $150,000),
provided that the preceding taxable year was 12 months in duration and the individual
filed a return for that preceding taxable year. An individual taxpayer whose income
varies during the taxable year may be able to use the annualized income installment
method described in § 6654(d)(2) to reduce the installment amount for installments for
the taxable year that are due earlier, consequently increasing the installment amount for
installments for the taxable year that are due later.
a return for that preceding taxable year. An individual taxpayer whose income
varies during the taxable year may be able to use the annualized income installment
method described in § 6654(d)(2) to reduce the installment amount for installments for
the taxable year that are due earlier, consequently increasing the installment amount for
installments for the taxable year that are due later.
(3) Required annual payment based on original return. The required annual
payment is based on the tax shown on the original income tax return (original return) for
the taxable year, rather than the tax shown on any amended income tax return
(amended return). In § 6654(d)(1)(B), the term “return for the taxable year” refers to the
original return for the taxable year and does not refer to an amended return filed after
the filing due date of the return for the taxable year. See, e.g., Mendes v.
Commissioner, 121 T.C. 308, 324 (2003) (“We have repeatedly held that a taxpayer’s
estimated tax liability is based upon the taxpayer’s tax liability as stated on the original
4

tax return as filed . . . .”). Thus, for example, for the 2019 taxable year, the return for the
taxable year of a calendar-year taxpayer is the return filed by July 15, 2020, or by
October 15, 2020, if the taxpayer received an extension of time to file under § 6081 of
the Code. Similarly, § 1.6654-2(b)(3) of the Income Tax Regulations provides that, with
respect to an individual, the term “return for the preceding taxable year” means the
individual’s income tax return for that preceding taxable year required by § 6012(a)(1) of
the Code and the individual’s self-employment tax return for that preceding year which
is required by § 6017 of the Code (that is, the original return of the individual for that
preceding taxable year) and does not refer to an amended return filed after the filing
due date of that return
year” means the
individual’s income tax return for that preceding taxable year required by § 6012(a)(1) of
the Code and the individual’s self-employment tax return for that preceding year which
is required by § 6017 of the Code (that is, the original return of the individual for that
preceding taxable year) and does not refer to an amended return filed after the filing
due date of that return. For purposes of § 6654, an amended return filed before the
filing due date is considered the original return, but an amended return filed after the
filing due date is not considered the original return. However, a joint return filed after
the filing due date that replaces previously filed separate returns is considered the
original return. See § 6013(b)(1); Rev. Rul. 80-355, 1980-2 C.B. 374 (Dec. 22, 1980).
(4) Due dates for installments of estimated income tax. Estimated income tax
installments of an individual having a calendar-year taxable year generally are due on
April 15, June 15, and September 15 of the taxable year, and on January 15 of the
following year. See § 6654(c)(2). For an individual with a fiscal-year taxable year, the
due dates of installments of estimated income tax are determined by substituting
corresponding months. See § 6654(k)(1). Certain taxpayers are subject to specialized
installment amounts and due dates. See §§ 6654(h), (i), and (j).
(5) Exceptions to the addition to tax. An individual taxpayer will not be subject to
the addition to tax under § 6654(a) if an exception applies. Under § 6654(e)(1), no
5

addition to tax will be imposed on an individual taxpayer if the taxpayer owes less than
$1,000 in tax, after subtracting tax withheld on wages. Under § 6654(e)(2), an
individual will not be subject to an addition to tax if (i) the individual did not have any tax
liability for the previous taxable year, (ii) the preceding taxable year was 12 months, and
applies. Under § 6654(e)(1), no
5

addition to tax will be imposed on an individual taxpayer if the taxpayer owes less than
$1,000 in tax, after subtracting tax withheld on wages. Under § 6654(e)(2), an
individual will not be subject to an addition to tax if (i) the individual did not have any tax
liability for the previous taxable year, (ii) the preceding taxable year was 12 months, and
(iii) the individual was a citizen or resident of the United States throughout the preceding
taxable year. Under § 6654(e)(3)(A), the addition to tax will not be imposed with respect
to any underpayment to the extent the Secretary of the Treasury or his delegate
(Secretary) “determines that by reason of casualty, disaster, or other unusual
circumstances the imposition of such addition to tax would be against equity and good
conscience.”
.02 Limitation on excess business losses of noncorporate taxpayers. Section
461(l)(1)(B) disallows the deduction of an excess business loss (as defined in section
3.02(1) of this notice) in the taxable year in which the loss is incurred.
(1) Excess business loss. The term “excess business loss” is defined generally as
the excess (if any) of (a) the aggregate deductions for the taxable year attributable to
trades or businesses of a non-corporate taxpayer, over (b) the sum of (i) the aggregate
gross income or gain for the taxable year attributable to such trades or businesses of
such taxpayer, and (ii) $250,000 ($500,000 in the case of a joint return) subject to
adjustment for inflation for taxable years beginning after 2018. See § 461(l)(3)(A) and
(C). An excess business loss is determined without regard to any deductions, gross
income, or gains attributable to any trade or business of performing services as an
employee. See § 461(l)(3)(A). Capital loss deductions are not taken into account in
computing an excess business loss. See § 461(l)(3)(B)(i)
stment for inflation for taxable years beginning after 2018. See § 461(l)(3)(A) and
(C). An excess business loss is determined without regard to any deductions, gross
income, or gains attributable to any trade or business of performing services as an
employee. See § 461(l)(3)(A). Capital loss deductions are not taken into account in
computing an excess business loss. See § 461(l)(3)(B)(i). The amount of capital gain
6

taken into account in calculating the excess business loss cannot exceed the lesser of
capital gain net income attributable to a trade or business or capital gain net income.
See § 461(l)(3)(B)(ii). Any disallowed excess business loss is treated as a net operating
loss (NOL) for the taxable year for purposes of determining any NOL carryover under
§ 172(b) for subsequent taxable years. See § 461(l)(2).
(2) CARES Act amendment to § 461(l)(1)(B). Prior to enactment of the CARES
Act, the disallowance under § 461(l)(1)(B) applied to any taxable year beginning after
December 31, 2017, and before January 1, 2026. Section 2304(a) of the CARES Act
amended § 461(l)(1)(B) to make the disallowance applicable only for any taxable year
beginning after December 31, 2020, and before January 1, 2026.
(3) Potential underpayments of estimated income tax resulting from CARES Act
amendment to § 461(l)(1)(B).
(a) Addition to tax. An individual taxpayer may have underpaid one or more
installments of estimated income tax for the taxable year that began in 2019, if the
individual taxpayer anticipated having a lower required annual payment after utilizing an
NOL carryover attributable to a prior-year excess business loss that, before the
enactment of the CARES Act, would have been available as an NOL carryover to
reduce taxable income in the taxable year that began in 2019 but now is no longer
available due to the CARES Act amendment to § 461(l)(1)(B)
if the
individual taxpayer anticipated having a lower required annual payment after utilizing an
NOL carryover attributable to a prior-year excess business loss that, before the
enactment of the CARES Act, would have been available as an NOL carryover to
reduce taxable income in the taxable year that began in 2019 but now is no longer
available due to the CARES Act amendment to § 461(l)(1)(B). Such an individual
taxpayer may be liable for an addition to tax for underpayment of estimated income tax
for the taxable year that began in 2019, if the individual taxpayer does not have zero tax
liability for the previous taxable year or does not otherwise qualify for the exception
provided in § 6654(e)(2).
7

(b) Exception to addition to tax based on equity and good conscience
considerations. The Department of the Treasury (Treasury Department) and the
Internal Revenue Service (IRS) have determined that it would be against equity and
good conscience to impose an addition to tax under § 6654 for certain underpayments
of estimated income tax resulting from changes made by the CARES Act to
§ 461(l)(1)(B). The relief provided in section 4.01 of this notice is intended for individual
taxpayers whose circumstance is described in section 3.02(3)(a) of this notice.
(4) Potential underpayments of estimated income tax resulting from CARES Act
amendment to § 172(b).
(a) Five-year NOL carryback and waiver. Section 2303(b) of the CARES Act
amended § 172(b) to provide a five-year carryback for NOLs arising in taxable years
beginning after December 31, 2017, and before January 1, 2021. See § 172(b)(1)(D)(i).
Under § 172(b)(3), taxpayers, including corporate and individual taxpayers, may elect to
forgo the new five-year carryback of such NOLs
).
(a) Five-year NOL carryback and waiver. Section 2303(b) of the CARES Act
amended § 172(b) to provide a five-year carryback for NOLs arising in taxable years
beginning after December 31, 2017, and before January 1, 2021. See § 172(b)(1)(D)(i).
Under § 172(b)(3), taxpayers, including corporate and individual taxpayers, may elect to
forgo the new five-year carryback of such NOLs. The Treasury Department and the IRS
understand that, in the absence of an election under § 172(b)(3), corporate and
individual taxpayers may have underpaid one or more installments of estimated income
tax for the taxable year that began in 2019 due to consequences similar to those
described in section 3.02(3)(a) of this notice.
(b) No exception to addition to tax based on equity and good conscience
considerations. The Treasury Department and the IRS have determined that the effect
on estimated income tax requirements of the CARES Act amendment to § 461(l)(1)(B)
is distinguishable from the effect of the CARES Act amendment to § 172(b).
Specifically, the Treasury Department and the IRS note that an individual taxpayer
8

cannot make an election to opt out of the effect of the CARES Act amendment to
§ 461(l)(1)(B). In contrast, taxpayers may elect under § 172(b)(3) to forgo the new five-
year carryback for NOLs. As a result, the Treasury Department and the IRS have
determined that it would not be against equity and good conscience to impose an
addition to tax under § 6654 for underpayments of estimated income tax resulting from
changes made by the CARES Act to § 172(b), and thus have decided not to provide
relief with respect to the new NOL carryback that taxpayers may elect to forgo.
SECTION 4. LIMITED WAIVER OF ADDITION TO TAX FOR UNDERPAYMENT OF
ESTIMATED INCOME TAX
.01 Waiver
inst equity and good conscience to impose an
addition to tax under § 6654 for underpayments of estimated income tax resulting from
changes made by the CARES Act to § 172(b), and thus have decided not to provide
relief with respect to the new NOL carryback that taxpayers may elect to forgo.
SECTION 4. LIMITED WAIVER OF ADDITION TO TAX FOR UNDERPAYMENT OF
ESTIMATED INCOME TAX
.01 Waiver. If an individual taxpayer’s circumstance is described in section
3.02(3)(a) of this notice and the individual taxpayer satisfies all of the qualification
requirements described in section 4.02 of this notice, a portion of the addition to tax
under § 6654 that is attributable to the CARES Act amendment to § 461(l)(1)(B) will be
waived for the individual taxpayer’s installments of estimated income tax that were due
on or before July 15, 2020, with respect to any taxable year that began during 2019.
The amount of the waiver is determined under section 4.02(3)(b) of this notice. This
waiver is provided under the authority granted to the Secretary under § 6654(e)(3)(A).
.02 Qualification requirements. To qualify for the waiver provided in section 4.01 of
this notice, an individual taxpayer must satisfy all of the requirements described in this
section 4.02.
(1) 2019 taxable year. The individual taxpayer must have a 12-month taxable
year for the taxable year that began in 2019.
9

(2) Timely filed 2018 Federal income tax return. The individual taxpayer must have
timely filed an original income tax return for the taxable year that began during 2018 that
reported an excess business loss on Form 461, Limitation on Business Losses.
(3) Qualifying waiver request. The individual taxpayer must make a request for the
waiver provided in section 4.01 of this notice in accordance with all of the requirements
described in this section 4.02(3).
ust have
timely filed an original income tax return for the taxable year that began during 2018 that
reported an excess business loss on Form 461, Limitation on Business Losses.
(3) Qualifying waiver request. The individual taxpayer must make a request for the
waiver provided in section 4.01 of this notice in accordance with all of the requirements
described in this section 4.02(3).
(a) Timely filed 2019 Federal income tax return. The individual taxpayer must
timely file an original income tax return for the affected taxable year that began during
2019 and correctly account for the CARES Act amendment to § 461(l)(1)(B) on the
original income tax return for that taxable year.
(b) Complete 2019 Form 2210 or Form 2210-F. The individual taxpayer must
complete the 2019 version of Form 2210, Underpayment of Estimated Tax by
Individuals, Estates, and Trusts, or the 2019 version of Form 2210-F, Underpayment of
Estimated Tax by Farmers and Fishermen, as applicable, for the affected taxable year
that began during 2019.
(i) Required calculation of applicable taxes. A taxpayer requesting relief under
this notice must determine lines 1 through 3 of Form 2210, or lines 1 through 5 of
Form 2210-F, by calculating the figures and amount of applicable taxes resulting from a
revised amount of taxable income. For this purpose, the term “revised amount of
taxable income” means the taxable income of the individual taxpayer, as reported on
the original income tax return (as described in section 3.01(3) of this notice) for the
taxable year that began in 2019, reduced (but not below zero) by the Taxable Income
Reduction Amount (as defined in section 4.03(1) of this notice).
10
ount of taxable income. For this purpose, the term “revised amount of
taxable income” means the taxable income of the individual taxpayer, as reported on
the original income tax return (as described in section 3.01(3) of this notice) for the
taxable year that began in 2019, reduced (but not below zero) by the Taxable Income
Reduction Amount (as defined in section 4.03(1) of this notice).
10

(ii) Calculation of required annual payment and installment payments. The
individual taxpayer must use the resulting current year tax (line 4 of Form 2210, or line 6
of Form 2210-F) to calculate the required annual payment and the required installment
payments for installments due on or before July 15, 2020.
(iii) Calculation involving annualized income installment method. An individual
taxpayer using the annualized income installment method under § 6654(d)(2) must also
reduce (but not below zero) the amount in each column of line 13 of Schedule AI of
Form 2210 by the Taxable Income Reduction Amount (as defined in section 4.03(1) of
this notice) if the column relates to an installment due on or before July 15, 2020.
(c) Attachments to Form 2210 or Form 2210-F. The individual taxpayer must
attach to the Form 2210 or the Form 2210-F:
(i) The Form 461 filed as part of the timely filed original income tax return for
the taxable year that began in 2018;
(ii) The Form 461 filed as part of the most recent amended income tax return
filed before March 27, 2020, for the taxable year that began in 2018, if an amended
income tax return for that taxable year was filed before March 27, 2020; and
(iii) A statement detailing how the taxpayer determined its Taxable Income
Reduction Amount (as defined in section 4.03(1) of this notice).
(d) Designation. The individual taxpayer must include “Notice 2021-8” on the top
of the Form 2210 or Form 2210-F.
ear that began in 2018, if an amended
income tax return for that taxable year was filed before March 27, 2020; and
(iii) A statement detailing how the taxpayer determined its Taxable Income
Reduction Amount (as defined in section 4.03(1) of this notice).
(d) Designation. The individual taxpayer must include “Notice 2021-8” on the top
of the Form 2210 or Form 2210-F.
(e) Submission of forms. The individual taxpayer must submit the Form 2210 or
Form 2210-F either with an original or amended income tax return for the affected
taxable year that began in 2019, or, if an original income tax return for that taxable year
11

has already been filed and the § 6654 addition to tax that is to be the subject of the
relief has already been paid, then with a Form 843, Claim for Refund and Request for
Abatement. The Form 2210 or Form 2210-F may be submitted electronically with an
electronically filed Form 1040-X, Amended U.S. Individual Income Tax Return.
.03 Taxable Income Reduction Amount.
(1) General definition. The term “Taxable Income Reduction Amount” means,
regarding an individual taxpayer, the lesser of:
(a) The amount by which the 2018 EBL (as defined in section 4.03(2)(a) of this
notice) would have reduced (but not below zero) the Pre-CARES Act 2018 Taxable
Income (as defined in section 4.03(2)(b) of this notice) if the 2018 EBL were not
disallowed; and
(b) The amount equal to 80 percent of the taxable income that would have been
determined for the taxable year that began in 2019 if the CARES Act had not been
enacted, computed without regard to the deduction allowable under § 172.
(2) Additional definitions. For purposes of this section 4.03, regarding an individual
taxpayer:
(a) 2018 EBL. The term “2018 EBL” means the following:
unt equal to 80 percent of the taxable income that would have been
determined for the taxable year that began in 2019 if the CARES Act had not been
enacted, computed without regard to the deduction allowable under § 172.
(2) Additional definitions. For purposes of this section 4.03, regarding an individual
taxpayer:
(a) 2018 EBL. The term “2018 EBL” means the following:
(i) If the individual taxpayer did not file an amended income tax return before
March 27, 2020, for the taxable year that began in 2018, the term “2018 EBL” means
the excess business loss reported on the individual taxpayer’s timely filed original
income tax return for the taxable year that began in 2018.
12

(ii) If the individual taxpayer filed an amended income tax return before March
27, 2020, for the taxable year that began in 2018, the term “2018 EBL” means the
lesser of:
(A) The excess business loss reported on the individual taxpayer’s timely
filed original income tax return for the taxable year that began in 2018; and
(B) The excess business loss reported on the most recent amended income
tax return filed before March 27, 2020, for the taxable year that began in 2018.
However, if the amounts described in sections 4.03(2)(a)(ii)(A) and (B) of this notice are
equal, the term “2018 EBL” means the amount stated in section 4.03(2)(a)(ii)(B) of this
notice.
(b) Pre-CARES Act 2018 Taxable Income. The term “Pre-CARES Act 2018
Taxable Income” means the following:
d income
tax return filed before March 27, 2020, for the taxable year that began in 2018.
However, if the amounts described in sections 4.03(2)(a)(ii)(A) and (B) of this notice are
equal, the term “2018 EBL” means the amount stated in section 4.03(2)(a)(ii)(B) of this
notice.
(b) Pre-CARES Act 2018 Taxable Income. The term “Pre-CARES Act 2018
Taxable Income” means the following:
(i) If the 2018 EBL is based on the taxpayer’s timely filed original income tax
return, as described in section 4.03(2)(a)(i) or section 4.03(2)(a)(ii)(A) of this notice, the
term “Pre-CARES Act 2018 Taxable Income” means the amount of taxable income
reported on the timely filed original income tax return of the individual taxpayer for the
taxable year that began in 2018 (that is, the amount on line 10 of the 2018 Form 1040,
U.S. Individual Income Tax Return, or the comparable line of any other applicable 2018
income tax return).
(ii) If the 2018 EBL is based on the taxpayer’s most recent amended income tax
return filed before March 27, 2020, as described in section 4.03(2)(a)(ii)(B) of this
notice, the term “Pre-CARES Act 2018 Taxable Income” means the amount of taxable
13

income of the individual taxpayer reported on the most recent amended income tax
return filed before March 27, 2020, for the taxable year that began in 2018.
(3) Examples. The examples in sections 4.03(3)(b) and (c) of this notice illustrate
the determination of the Taxable Income Reduction Amount as defined in section
4.03(1) of this notice.
(a) Assumptions applicable to both examples. For the purpose of these
examples, assume all of the following:
turn filed before March 27, 2020, for the taxable year that began in 2018.
(3) Examples. The examples in sections 4.03(3)(b) and (c) of this notice illustrate
the determination of the Taxable Income Reduction Amount as defined in section
4.03(1) of this notice.
(a) Assumptions applicable to both examples. For the purpose of these
examples, assume all of the following:
(i) The taxpayer is an individual calendar-year taxpayer.
(ii) The taxpayer satisfies all conditions for the waiver described in section 4.02
of this notice.
(iii) No loss limitation rule applies to the taxpayer.
(iv) The taxpayer, before the enactment of the CARES Act, would have had
taxable income (determined without regard to the deduction allowable under § 172) in
the 2019 taxable year of $1,000,000, so that the amount stated in section 4.03(1)(b) (80
percent of the taxable income that would have been determined for the taxable year that
began in 2019 if the CARES Act had not been enacted and computed without regard to
the deduction allowable under § 172) is $800,000.
(b) Example 1. Assume that the taxpayer has a 2018 EBL of $1,000,000 and
Pre-CARES Act 2018 Taxable Income of $1,500,000. As a result, the amount stated in
section 4.03(1)(a) (the amount by which the 2018 EBL would reduce the Pre-CARES
Act 2018 Taxable Income if the 2018 EBL were not disallowed) is $1,000,000. The
Taxable Income Reduction Amount is $800,000, the lesser of $1,000,000 and
$800,000.
14
Assume that the taxpayer has a 2018 EBL of $1,000,000 and
Pre-CARES Act 2018 Taxable Income of $1,500,000. As a result, the amount stated in
section 4.03(1)(a) (the amount by which the 2018 EBL would reduce the Pre-CARES
Act 2018 Taxable Income if the 2018 EBL were not disallowed) is $1,000,000. The
Taxable Income Reduction Amount is $800,000, the lesser of $1,000,000 and
$800,000.
14

(c) Example 2. Assume that the taxpayer has a 2018 EBL of $1,000,000 and
Pre-CARES Act 2018 Taxable Income of $700,000. As a result, the amount stated in
section 4.03(1)(a) (the amount by which the 2018 EBL would reduce the Pre-CARES
Act 2018 Taxable Income if the 2018 EBL were not disallowed) is $700,000. The
Taxable Income Reduction Amount is $700,000, the lesser of $700,000 and $800,000.
SECTION 5. ADDITIONAL INFORMATION
Visit IRS.gov/Form2210, IRS.gov/Form2210F, or IRS.gov more generally for forms,
instructions, and additional information.
The principal author of this notice is Alexander Wu of the Office of the Associate
Chief Counsel (Procedure and Administration). For further information, please contact
Mr. Wu at (202) 317-6845 (not a toll-free number).

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- [Notice 2021-5 Beginning of Construction for Sections 45 and 48; Extension of Continuity Safe Harbor for Offshore Projects and Federal Land Projects](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2021_5.md)
- [Notice 2021-6 Waiver of Information Reporting Requirements with Respect to Certain Amounts Excluded from Gross Income](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2021_6.md)
- [Notice 2021-7 Part III - Administrative, Procedural, and Miscellaneous COVID-19 Relief for Employers Using the Automobile Lease Valuation Rule](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2021_7.md)
- [Notice 2021-8 Relief from Addition to Tax for Underpayment of Estimated Income Tax by Individuals Affected by Amendment to Section 461(l)(1)(B)](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2021_8.md)
- [Notice 2021-9 Part III --- Administrative, Miscellaneous, and Procedural Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2021_9.md)
- [Notice 2021-10 Extension of Relief for Qualified Opportunity Funds and Investors Affected by Ongoing Coronavirus Disease 2019 Pandemic](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2021_10.md)
- [Notice 2021-11 Additional Relief with Respect to Employment Tax Deadlines Applicable to Employers Affected by the Ongoing Coronavirus (COVID-19) Disease 2019 Pandemic](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2021_11.md)
- [Notice 2021-12 Part III - Administrative, Procedural, and Miscellaneous](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2021_12.md)
- [Notice 2021-13 Relief for Partnerships from Certain Penalties Related to the Reporting of Partners’ Beginning Capital Account Balances](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2021_13.md)
- [Notice 2021-15 ADDITIONAL RELIEF FOR CORONAVIRUS DISEASE (COVID-19) UNDER § 125 CAFETERIA PLANS](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2021_15.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2021_8. Check the current official text before relying on it. Not legal advice.