New 1040 client with a carryforward request from 2016 into 2017 that was denied by the IRS. IRS has asked to carry the NOL back to 2014. The denied 2017 return also added1231 losses not included on the 2017 return initially.

Am I correct in taking the NOL only back to 2014 and letting the 1231 carryforward from the 2016 return to the amended 2017?

Given 2014 is closed - any friendly advice on what happens from here?