Hi,
I have client that had an NOL in 2020 but did not make the election to carryforward. Probably should have but it's too late. What I understand from the Cares Act is that you have to carry the loss back 5 years if you do not elect to forgo. This means that we would have to go back to 2015 when the taxpayer had enough income to use up the NOL. My concern is that 2015 is closed due to the statute of limitations but I read somewhere that a carryback can generate a refund for the prior year even if that tax year is technically closed by the statute of limitations. Would my client qualify for the refund if we took the NOL to 2015?
Thanks!
Best Answer Click here
It is not closed, so your client can get a refund.
For a carryback NOL, the year doesn't get closed until the year of the NOL (2020 in your case) is past the 3 year limit.
It is not closed, so your client can get a refund.
For a carryback NOL, the year doesn't get closed until the year of the NOL (2020 in your case) is past the 3 year limit.
Thanks!
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