Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

Is there a Revenue Ruling that permits adjustments in NOL carryforwards…

Customer Question
Is there a Revenue Ruling...
Is there a Revenue Ruling that permits adjustments in NOL carryforwards without amending earlier years??
Submitted: 8 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 29 minutes by:
6/28/2010
Tax Professional: Lev, Tax Advisor replied 8 years ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,353
Experience: Taxes, Immigration, Labor Relations
Verified

You are correct that generally, you must carry back the entire amount of the NOL to the 2 tax years before the NOL year (the carry back period), and then carry forward any remaining NOL for up to 20 years after the NOL year (the carry forward period).

 

You can choose not to carry back your NOL - so-called "Election To Forego the Carry back Period for Net Operating Loss" pursuant to the IRC, Section 172(b)(3).

 

Please see for reference IRS publication 536 - www.irs.ustreas.gov/pub/irs-pdf/p536.pdf page 8:

To make this choice, attach a statement to your original return filed by the due date (including extensions) for the NOL year. This statement must show that you are choosing to waive the carry back period under section 172(b)(3) of the Internal Revenue Code.

If you filed your return timely but did not file the statement with it, you must file the statement with an amended return for the NOL year within 6 months of the due date of your original return (excluding extensions). Enter "Filed pursuant to section(NNN) NNN-NNNN2" at the top of the statement.

 

Let me know if you need any help.

 

Ask Your Own Tax Question
Customer reply replied 8 years ago
Sorry for the delay, I've been out of town...In my situation I've got NOL carryovers, so an amendment will only increase the amount of the NOL....I thought you could "change" the NOL carryforward to the correct amount in view of the fact that the tax laibility doesn't change..Matt
Tax Professional: Lev, Tax Advisor replied 8 years ago

Hi Matt,

 

You can choose not to carry back your NOL - - if that will not benefit you and if such election timely made.

 

If you do so - you will have 20 years to use NOL.

If an amendment will increase the amount of the NOL - that means you do not have taxable income and may not use NOL in the current year - but on the other hand - NOL may be used in following years and will reduce your taxable income.

 

However - if you have a NOL and have a taxable income - the NOL should be used. You may not decide not to use NOL

 

Let me know if you need any help.

 

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,353
33,353 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
If Company completes and audit (financial - not tax) and the
If Company completes and audit (financial - not tax) and the auditors post a prior period adjustment for a year closed for amendment, how does one notate the prior period change on the M-2 Reconciliat… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,453 satisfied customers
If I have business loss from 5 years ago and elected to
If I have business loss from 5 years ago and elected to forego the carryback period to carry the losses forward, can it be used on whatever year i owe the most taxes, or is there rules on what year it… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
We have a NOL carryover on our federal income taxes. While I
We have a NOL carryover on our federal income taxes. While I was working on our taxes this week, I noticed an error was made in 2013, 2014 and 2015 in the calculation of the NOL carryover. I neglected… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Stephen,I have an NOL filing question. I have a single
Hi Stephen,I have an NOL filing question. I have a single member LLC who files a ;Schedule C. He has an NOL in 2013 and 2014. I know time has lapsed for filing a 2013 loss carryback. So I plan to file… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
A little over my head here. I'm ready to tip accordingly. :)
A little over my head here. I'm ready to tip accordingly. :) A client closed their business (restaurant) after many years. The last few years were poor. They have been setup as a C-Corp since day one.… read more
Jonathan Tierney
Jonathan Tierney
MBA
295 satisfied customers
How far back can I amend my corporate tax? I forgot to carry
How far back can I amend my corporate tax? I forgot to carry over my 2011 losses and I don't need to carry back, do I have to? I need help completing it… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,353 satisfied customers
I am trying to calcuate an NOL Carryforward for an individual. The losses have flowed
I am trying to calcuate an AMT NOL Carryforward for an individual. The losses have flowed through on 1120S k-1's. I can't find any decent instructions on how to do so, and I'm not trusting my software… read more
jgordosea
jgordosea
Enrolled Agent
Bachelor's Degree
2,885 satisfied customers
The background situation is: when calculating "After Carryback"
The background situation is: when calculating "After Carryback" Adjusted Gross Income within Form 1045 for the purpose of determining the impact of a NOL in a carryback year, the lower AGI results in … read more
taxmanrog
taxmanrog
Master\u0027s Degree
1,072 satisfied customers
I have a client that has a Net operating loss carryforward
I have a client that has a Net operating loss carryforward from 2010 to 2011 on their 1040 as a result of losses from an S-corp. Line 22 of the 2011 1040 shows a loss as well as line 37. What line do … read more
Anne
Anne
Master Tax Preparer
1,328 satisfied customers
For 2011 I had an NOL that was carried back to 2009. The 2011
For 2011 I had an NOL that was carried back to 2009. The 2011 NOL was created by a loss on a foreclosed rental and the corresponding suspended passive losses that were released due to the foreclosure.… read more
taxmanrog
taxmanrog
Master\u0027s Degree
1,072 satisfied customers
Is an Federal Amended return required to be filed if the changes
Is an Federal Amended return required to be filed if the changes required only affect the NOL carryforward? In other words, can I just update the NOL's on my current year return filed to reflect chang… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I have a client who needs to amend his 2009 individual income
I have a client who needs to amend his 2009 individual income tax return which will result in an increased NOL. He previously filed Form 1045 to carry back his original NOL to 2005 after filing the ap… read more
RD
RD
Self Employed
Master's Degree
1,164 satisfied customers
I need to prepare a 1045 Application for Tentative Refund
I need to prepare a 1045 Application for Tentative Refund Does Turbo Tax prepare this form… read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
We have a $10,000 NOL carryforward from 2008. On our 2009
We have a $10,000 NOL carryforward from 2008. On our 2009 1040, we have $40,000 of business income and $40,000 of itemized deductions, therefore, no tax due WITHOUT carrying forward the 2008 NOL. If I… read more
RD
RD
Self Employed
Master's Degree
1,164 satisfied customers
I had a NOL in 06. In 07 without using the NOL I had no taxes
I had a NOL in 06. In 07 without using the NOL I had no taxes due after deduction. I did not enter the loss on the other income line, Should I have? It would not have changed my tax. The next year I d… read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
I farrm , My question is how much of a prvious years NOL can
I farrm , My question is how much of a prvious year's NOL can you carry forward and use to offset this year's tax… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,353 satisfied customers
Our company has a history of losses which have recently been
Our company has a history of losses which have recently been absorbed and we are a current taxpayer. Since we had NOL's we did not claim certain tax credits in closed years that would have carried for… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
AMT NOL question. I have a large casualty loss deduction of
AMT NOL question. I have a large casualty loss deduction of about $1,000,000 exceeding my yearly income of $300,000: will the NOL amount (for carryover) be different under the AMT from the regular NOL… read more
jgordosea
jgordosea
Enrolled Agent
Bachelor's Degree
2,885 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x