Discussion:CORPORATE NAME CHANGE EFFECT ON NOL
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Discussion Forum Index --> Advanced Tax Questions --> CORPORATE NAME CHANGE EFFECT ON NOL
Discussion Forum Index --> Tax Questions --> CORPORATE NAME CHANGE EFFECT ON NOL
MEMPHISTAXLADY (talk|edits) said: | 20 March 2008 |
| I have a C corporation who has a nol carryforward from 2006 to 2007, as it was incorporated in 2006. In Feb, 2008 the corporation changed their name and Federal ID number. I anticipate another loss on the 2007 return. How does the name & ID change affect this? | |
PHIL MOODY (talk|edits) said: | 20 March 2008 |
| Explain how they changed their ID number. That is next to impossible, and continue as the original corporation.
It sounds like a new corporation was formed? | |
| 20 March 2008 | |
| It will not affect your corporate loss being carryforward, if you will mark the box "Changed Name" over the tax return and must attached a copy of application Form for Name & ID change. | |
| March 20, 2008 | |
| Well, I'm with Phil. This isn't a mere name change with a new corp ID#... | |
Savageman03 (talk|edits) said: | 21 March 2008 |
| Yes, it sounded like a new corporation was formed to me as well. How do I pull the loss forward onto the new corporation, which now has become a S Corp. | |
RoyDaleOne (talk|edits) said: | 21 March 2008 |
| I can see where someone would think you needed a new FEIN when you change the of a Corporation, if that is the case I would think it would still be a F reorg. However, if a new corporation was formed there is no way to use the loss from the old corporation.
When I have this situation I advice my client to see if it is possible to continue business in the old corporation until the loss is used up. | |
RoyDaleOne (talk|edits) said: | 21 March 2008 |
| There is no known way to simply pull the loss from a C Corporation to a new S Corporation. | |
Savageman03 (talk|edits) said: | 21 March 2008 |
| THANK YOU. I kinda thought he was out of luck. Would you believe he filed his own Corporate Return (yikes), then decided he needed to change the name of his corporation because someone else had a similar name that was disreputable. Then, he put his corporate return on his laptop without making any paper copies, then the laptop was stolen.
I think I am wearing a sign. His partner (twin brother) is hoping he kept a copy of it on his computer. Now I get to amend this tax return (he did not understand depreciation) and come forward. (and I wanted to be a tax preparer!!!!) | |
| 22 March 2008 | |
| As RoyDale suggests, if it is the same corporation, the NOL is suspended if an S election has been made. The NOL doesn't disappear (assuming it's still the same corporation), it's just suspended until it becomes a C again or the 20 years runs out, whichever comes first <G>. | |
