Discussion:Revoke an Irrevocable NOL Carryback election
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Discussion Forum Index --> Advanced Tax Questions --> Revoke an Irrevocable NOL Carryback election
Discussion Forum Index --> Tax Questions --> Revoke an Irrevocable NOL Carryback election
| 2 October 2008 | |
| Can one revoke the [IRC Section 172(b)(3)] Election to Forego the Carryback Period for Net Operating Loss (NOL), within the same current filing year the election was made?
That is to say that the election was made in the current year 2007 Form 1040 Return and for one to prepare a 2007 Form 1040X Amended Return withdrawing the election. Keep in mind the election clearly states that the taxpayer irrrevocably elects to relinquish the entire carryback period with respect to the NOL incurred for the taxable year ended 2007. Thanks,,,, | |
| 2 October 2008 | |
| No cite at hand right now, but I believe that you can revoke if done within the extended filing date (by 10/15/08). After that, I'm sure you are SOL. | |
| 2 October 2008 | |
| You're right. Once elected, can't be undone. I got mixed up with the opposite situation, whereby if an original return is filed without claiming the election, you can "re-do" and make the election as long as it's done within 6 months of original due date of the return. Reg. Section 301.9100-2. | |
| 3 October 2008 | |
| If you did not elect to carryforward on 2007 timely filed 1040 and TP no longer wants to carryback you must "re-do" so within 6 months of original due date? | |
| 3 October 2008 | |
| For the purpose of meeting the 6-months; Does a Farmer who files his return prior to March 1 to avoid the need to make estimated tax payments still have a "due date" April 15th? | |
Harry Boscoe (talk|edits) said: | 5 October 2008 |
| In my experience, a second (or third, etc.) return filed on or before the due date is *not* an amended return, but rather it replaces, supersedes, supplants, whatever, an earlier filed return and becomes "the" return for the year. I'm not sure how this affects the NOL election, but for someone to say "you can't do [something] on an amended return" refers to a return filed *after* the due date. I guess I'm throwing my hat in with Taxtamer, the first response to the OP. | |
RoyDaleOne (talk|edits) said: | 5 October 2008 |
| "A taxpayer has the right to file an amended tax return at any time on or before the due date of the original return, which will be accepted as the taxpayer's original return for the taxable year. An amended return filed after the due date of the original return cannot change a binding election made in the original return. However, if the original election was not available to the taxpayer and therefore invalid, the taxpayer is entitled (indeed, is required) to change the election to the proper treatment"
Either 4/15 (no extension) or 10/15 (extended) I would guess without further research. I agree with Harry comments. | |
| 5 October 2008 | |
| Roy - Is the S195 startup cost election binding also? Can't be revoked on an amended return after Oct. 15th? Thanks. | |
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