TEI therefore opposes the proposed shortening of the FTC carryback
period set forth in the Senate bill.
199 deduction for the carryback
years because of reductions in income as well as the possibility of the Sec.
Reevaluate the dollar ranges for the NOL carryback
priority codes to verify that they accomplish their intended purpose;
BNA Corporate Tax Analyzer is the only product that automates the calculation and tracking of carryforwards, carrybacks
, NOLs, FTCs, AMT, GBCs, charitable contributions, and more over multiple years.
TEI supports lengthening the net operating loss carryback
period from two years to five years, effective for taxable years ending in 2008 or 2009 (or, at the election of the taxpayer, taxable years beginning in 2008 or 2009).
Randy Paschke, chairman of the accounting department at Wayne State University in Detroit, said investment banks' write-offs from mortgage-related losses are so large, "they probably wouldn't get all their taxes back with just a two-year carryback
This third quarter loss will be substantially offset by the tax recovery resulting from the carryback
of net operating losses during the fourth quarter, as discussed above.
However, this period is modified in the case of a claim for credit or refund attributable to an NOL carryback
; the limitation period ends three years after the due date for filing the return (including extensions) for the tax year of the NOL that results in the carryback
i]f the claim for credit or refund relates to an overpayment attributable to a net operating loss carryback
or a capital loss carryback
, in lieu of the 3-year period of limitation prescribed in subsection (a), the period shall be that period which ends 3 years after the time prescribed by law for filing the return (including extensions thereof) for the taxable year of the net operating loss or net capital loss which results in such carryback
, or the period prescribed in subsection (c) in respect of such taxable year, whichever expires later.
Tax rebates generated as a result of the longer carryback
period must be reinvested in new LIHTC properties, thereby financing more housing and creating new construction jobs.
17, 2009, allowed an eligible small business (ESB) to elect to carryback
an "applicable 2008 net operating loss" for three, four or five years.
On April 24, the Internal Revenue Service (IRS) issued Revenue Procedure 2009-26 which included updated guidance to small businesses on how to elect the three-, four-, or five-year carryback
for 2008 net operating losses (NOL) that was provided in the 2009 economic recovery legislation.