1311-1314 are applicable before they can analyze whether they can help a taxpayer when the taxpayer did not make an election to waive the carryback
period for an NOL and has since carried the NOL forward.
While interest rates are currently low, the accelerated depreciation may provide enhanced net operating loss carryback
opportunities or guarantee that the deduction may be used to reduce taxes if 2010 or 2011 is profitable.
Therefore, in a Form 1120X carryback
situation to which Sec.
More than 30 states prohibit NOL carrybacks
For the tax years ending after 2002, WHBAA suspends the 90 percent limitation on using any alternative minimum tax NOL deduction attributable to the carryback
of an applicable NOL for which the extended carryback
period is elected.
IRS Revenue Procedure 2002-40 provides detailed guidance on how to use or waive both the entire five-year carryback
period and the basic two-year carryback
period for taxpayers that filed their returns for tax years 2001 or 2002 before the law was passed, and could have been barred from taking advantage of the new extended NOL carryback
The net operating loss carryforward and carryback
provisions of section 172 permit taxpayers to ameliorate the unduly harsh and inequitable consequences of taxing income strictly on an annual basis.
An IRS error can occur if an NOL carryback
releases a credit back to an earlier year.
Recent legislation expanded the carryback
period for tax years beginning before Jan.
2009-26 (IRB 2009-19, May 11, 2009) provides that an ESB may elect a three-, four- or five-year carryback
period by filing Form 1045.
A net operating loss attributable to certain product liability expenses (PLE) under IRC section 172 is allowed a special 10-year carryback
period instead of the normal two years.
The specific question before the Court in United Dominion concerned the 10-year carryback
rules for product liability losses (PLLs).