How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Marvin,EA Your Own Question
Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
Type Your Tax Question Here...
Marvin,EA is online now
A new question is answered every 9 seconds

If an individual is going to file for Chapter 7 in the current

Resolved Question:

If an individual is going to file for Chapter 7 in the current year, will filing affect his ability to use a NOL carryback otherwise available?
Submitted: 7 years ago.
Category: Tax
Expert:  Marvin,EA replied 7 years ago.
<p>Hello and thanks you for using Just Answer. Filing a personal Chapter 7 will not effect your ability to use NOL carry back unless your Chapter 7 will discharge the year(s) you will be using the NOL.</p>
Customer: replied 7 years ago.

I am in a position where I can use an operating loss for 2008 to carry back and offset income earned several years ago. I need to declare personal Chapter 7, and wonder if I need to wait until after I have filed my 2008 tax return to do so in order not to mess up a tax refund. If you can clarify this, I will be very pleased.

Expert:  Marvin,EA replied 7 years ago.
If you receive a refund from the IRS for the NOL, by law you must report the amount to the bankruptcy court. By federal law you must report all income receive to the bankruptcy court. In this case you should wait until your Chapter 7 is discharged before you file your NOL for 2008 for a refund.
Marvin,EA and 3 other Tax Specialists are ready to help you