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Hi and welcome to Just Answer!If you miss the deadline for a waiver - you are required to carry back - and only the unused part of the NOL may be carried forward. If you do not file this statement on time, you cannot waive the carry back period.If you carry forward your NOL to a tax year after the NOL year, list your NOL deduction as a negative figure on the Other income line of Form 1040. You must attach a statement that shows all the important facts about the NOL. Your statement should include a computation showing how you figured the NOL deduction.If you simply do not carry NOL back and will carry forward without waiver - chances that the IRS will disallow such treatment are very high. That doesn't mean - you will be audited - but most likely you will receive a letter with proposed correction to your tax return - and will be given 30 day to reply if you disagree.Sorry if you expected differently.
Hi Lev: I checked with my CPA and he advised me that "most probably" he had included the NOL carry forward letter in the 1040 package he gave me to mail. Due to some paper confusions - he may have forgotten to provide that in copy created for me. He has the letter in his electronic copy. I filed paper return last year. His advise is to go ahead and file with NOL carry forward and if IRS questions - insist that it was in the package mailed and that IRS lost it. Should I go ahead and file with NOL carry forward? The difference for me is of course a lot. I can of course ask for a copy of my 1040 from 2011 from IRS. If indeed IRS does not have the NOL forward election letter - does the fact that my CPA insisted that it was mailed and it is in his electronic copy and IRS lost the paper - hold any ground?