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Level 1
March 20, 2025

61199

  • March 20, 2025
  • 4 replies
  • 89 views

The following diagnostic is generating:

Per Form 172 instructions, a Form 172 should be attached to Form 1040, 1040SR or Form 1040X to support each net operating loss deduction taken in the return. E-file can support the inclusion of one Form 172 entered for one year's net operating loss deduction in the Prior Year Form 172 section of the Net Operating Loss screen. A separate Form 172 should be manually prepared and attached as a PDF attachment for each of any additional year net operating loss deductions taken in the return.

 

Solution:

Help Article 

4 replies

March 20, 2025

Per Form 172 instructions, a separate Form 172 should be prepared for each NOL. However, currently only one instance of Form 172 is supported.

Use the NOL Worksheet from prior years to complete and attach additional 172's.

See: 
Common questions about Net Operating Losses(NOLs), Form 172 and diagnostic ref 61199 in Lacerte
Common questions about Net Operating Losses(NOLs), Form 172 and diagnostic ref 61199 in ProConnect Tax 

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Level 10
April 1, 2025

If Form 172 is not highlighted, IOW no Form 172 appears in Forms, will it be sent?

And if no 172 appears then does that mean I need to create it in the Prior Year NOL input screen?

Level 10
April 1, 2025

And since this isn't a critical diagnostic that means to me that the IRS doesn't care. And maybe they don't care because they can look for the prior year NOLs in past tax returns.  (I've been through this before so I'm not - yet- frustrated yet it seems Intuit would have some pipeline to the IRS to be able to have more complete guidance, in a similar way that Spidell has with the FTB.)

Thank you for listening Intuit Gabi!

April 2, 2025

Hi @strongsilence -
Following up to confirm that form 172 will only generate for a current year NOL. If you put in a prior year NOL, it won't display on the forms tab.