Filing form 1045 NOL late

[dbtaxsolutions]

I goofed up and was not aware filing form 1045 for NOL for 2018 to carry forward to 2019.  I had proseriec basic in 2018 and it did not have the form available there. 

I am trying to amend return now and file form 1045 with Sch A /B, what's the repercussion,  what's the likelihood IRS will deny NOL.? Thank you. (worried)

[George4Tacks]

The 1045 is to carryback the NOL to prior years. It must be filed by the end of 2019 for a 2018 loss. You now need to file a 1040X for each of the years of carryback. See the instructions for 1045 https://proconnect.intuit.com/community/help-articles/help/generating-individual-schedule-c/00/5195 and 1040X https://www.irs.gov/pub/irs-pdf/i1040x.pdf

[Terry53029]

Most taxpayers no longer have the option to carryback a net operating loss (NOL). For most taxpayers, NOLs arising in tax years ending after 2017 can only be carried forward. The 2-year carryback rule in effect before 2018, generally, does not apply to NOLs arising in tax years ending after December 31, 2017. Exceptions apply to certain farming losses and NOLs of insurance companies other than a life insurance company. Also, for losses arising in taxable years beginning after Dec. 31, 2017, the net operating loss deduction is limited to 80% of taxable income (determined without regard to the deduction).

[MACPINA]

I believe this was changed in 2020 due to the Corona virus. The IRS allows a carryback up to 5 yrs. My client wanted to use a large NOL from 2019. I did a 1045 trying to carry it back to 2018, when he had a large income form his Schule C. The IRS kicked it back, saying that we had to go back to 2014 first and use any leftover amounts to 2015, 16 etc. So right now, the plane is to carry it forward to his 2020 return. My question is: since we didn't make an election in 2019 to either carry back or carry forward, do I have to do anything to be able to carry the NOL forward to 2020? Do I have to amend his 2019 return to be able to carry the loss forward?

[George4Tacks]

If there was no election to WAIVE the carryback period, the client must do the carryback (using 1040X now) for ALL of the carryback years. Just as IRS said, you will need 1040X for 2014, 2015, 2016, 2017, 2018 and then if any NOL is leftover it will apply to 2020.