Discussion:NOL for Sch C - 3 Year Carryback or am I dreaming??
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Discussion Forum Index --> Tax Questions --> NOL for Sch C - 3 Year Carryback or am I dreaming??
| 30 January 2008 | |
| I want to get some input regarding my situation. I have an NOL from 2006 that I want to carryback 3 years. I filed a form 1045 ( App for Tentative Refund) which was denied because it says that there needs to be a casualty loss in order to carryback the loss three years. I took my position to carry it back three years based on the publication 936 (NOLs page 3 Qualified Small Business ("QSB") which states that a qualified small biz can carryback the loss 3 years. It depends on how you read the section on the carryback rules. The section that I'm reading may be defining a QSB and may not be listing this as an additional exception to the 2 year carryback rule. I would like to say that it lists it as a separate exception. I spoke with someone in the tax law dept at the IRS. She agreed with my position.
Should I appeal the ruling based on the interpretation that I have and support it with the information that I received from the tax law representative? What are my chances? | |
| 30 January 2008 | |
| A small business (less than $5 million in gross receipts) can carry its loss back 3 years if the loss was attributable to a Presidentially declared disaster. | |
| 30 January 2008 | |
| Did your loss arise from a Presidentially declared disaster, or from casualty or theft? If not, the 3-year carryback does not apply to you, even though you meet the definition of a "qualified small business." See IRC Sec. 170(b)(1)(F).
Oral advice from an IRS employee (even an attorney) is not authority on which you can rely. | |
| 30 January 2008 | |
| I didn't know there was a way to call IRS and talk to an attorney. The IRS "Law Dept?" The GAO routinely tests IRS accuracy on phone inquiries, and it runs around 2/3rds on simpler questions. Part of the problem, though, is the caller isn't clear or leaves out important facts. | |
| 2 February 2008 | |
| I knew that it wouldn't be right to try this anyway. Although, I did read that the Senate is trying to include a provision in the new stimulus package that may allow for a 5 year carryback for business losses incurred in 2006 and 2007. Maybe I'll get lucky and this will be a part of the final package. | |
| 2 February 2008 | |
| they had better get their act together soon - most people have already completed their 2006 returns and made an irrevocable election to carryforward or carried back 2 years.
Another 'much ado about nothing'? | |
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