I have filed returns with NOL carryforwards. No rejections. What do I do with the first page of the 1045? What do I send to the IRS? 1045? A & B? For each year?

Forum|Forum|6 years ago
December 7, 2019
9 replies
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ProSeries Professional

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Best answer by TaxGuyBill

That calculation (such as schedule A from the year of the NOL) was supposed to be sent with the tax return.

You must attach a statement that shows all the important facts about the NOL. Your statement should include a computation showing how you figured the NOL deduction. If you deduct more than one NOL in the same year, your statement must cover each of them.

https://www.irs.gov/publications/p536#en_US_2018_publink1000177402

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bevantaxservicesAuthor

Level 4

Yes, 172 election to CF all years. Use 1045 A & B to manually calc NOL & CF. Entered into ProSeries CF wksht. How does IRS know my calcs are correct?

George4Tacks

Level 15

Annually they trust that you do things right. If they see something "out of line", then they select the return for audit and ask you to produce all computations and receipts for those things in question. Double check your work and keep a copy for the future.
It sounds like you have your ducks in a row.

Answers are easy. Questions are hard!

T

TaxGuyBillAnswer

That calculation (such as schedule A from the year of the NOL) was supposed to be sent with the tax return.

You must attach a statement that shows all the important facts about the NOL. Your statement should include a computation showing how you figured the NOL deduction. If you deduct more than one NOL in the same year, your statement must cover each of them.

https://www.irs.gov/publications/p536#en_US_2018_publink1000177402

B

bevantaxservicesAuthor

Level 4

Many thanks to TaxGuyBill and others that responded to my NOL carryforward question. The link gives the official IRS explanation for documentation required for carryforwards. George4Tacks also clarified that the first page of the 1045 called "Application for Tentative Refund" is only used for a carryback situation that would result in a refund. I am using the other pages of the 1045, Schedule A & B, to manually calculate and document the carryforward.

George4Tacks

Level 15

1045 is for carryBACK not carryFORWARD.

I am assuming from the first sentence that you have elected to NOT carryBACK and hence to carryFORWARD. Is that correct? I love these double negative elections.

Answers are easy. Questions are hard!

S

shubhash_mahimal

Level 2

Thanks

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