Discussion:NOL statement
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Discussion Forum Index --> Tax Questions --> NOL statement
| 10 August 2007 | |
| A client had their return prepared last year and did not include a statement waiving the NOL carryback period. Has anybody had any experience in challenging the lack of the statement in the initial return and trying to forego the carryback period on later returns? | |
| 10 August 2007 | |
| I think you are confused ... I believe that you will find that you must elect TO carry back the NOL, other wise it must be carried foreword. There is no requirement that requires ... statement waiving the NOL carryback period. | |
| 10 August 2007 | |
| Hi you can attach a statement to an amended return to waive the NOL C/B looked up quick RIA handbook 172(b)(3). 1040 you are confused. bye | |
Michaelstar (talk|edits) said: | 10 August 2007 |
| 1040man - as WesR is saying one MUST c/b the nol unless a proper election was made to forego the c/b period. That is part of the necessary wording in the statement that gets attached....... | |
| 10 August 2007 | |
| Wes, I think the timeframe for amending to change your mind (carry forward or carry back) is the end of the year after the NOL year. | |
| 10 August 2007 | |
| I believe there is an automatic extension of 6 months from the due date of a return, excluding extensions, to make the election. So on a due date of 4/15/06 the election would have to have been made by 10/15/06. | |
| 10 August 2007 | |
| Michaelstar said: 1040man - as WesR is saying one MUST c/b the nol unless a proper election was made to forego the c/b period.
1040man said: believe that you will find that you must elect TO carry back the NOL. What's the difference in the statements?? | |
Michaelstar (talk|edits) said: | 10 August 2007 |
| One does not elect to c/b the NOL - that is automatic per the code. One only elects to "forego" the c/b period (should that be desired) - that election is not automatic, but must be made. | |
| 10 August 2007 | |
| You have to elect to FOREGO the carryback, there is no election TO carry back, you automatically carry back unless you elect to forego it, then you can carry it forward instead. | |
| 10 August 2007 | |
| or you can just ignore it. That's a valid election. Stupid, but valid. | |
Death&Taxes (talk|edits) said: | 10 August 2007 |
| KathyT is correct about the six months from filing deadline, and if I recall that six months does not begin with the end of the extension period. | |
| 10 August 2007 | |
| OK, then I confused the deadline for using the 1045 instead of the 1040-x, which I believe is the end of the year following the NOL. | |
Michaelstar (talk|edits) said: | 10 August 2007 |
| D&T - you are very correct. See page 1 of the instructions to Form 1139. | |
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