NOL

[dvincentchisholm]

Last year my client had over a $100000 loss on her business and I was thinking of going back and filing an Application for Tentative Refund" (form 1045) which was not done
On last year's filing, I checked the box to not transfer the NOL to this year and this year, 2020; however my client can use the loss carryforward. Is there a process to "uncheck" the box and bring the loss forward? Is this just a software issue or is there a process I need to go through with the IRS to bring the loss forward. I use ProSeries.
Thank you

[sjrcpa]

What year was the NOL?

Did checking the box produce an election to waive the carryback?

[dvincentchisholm]

It was a 2019 NOL

I did not check any boxes

Thank you

Vince

[sjrcpa]

If you did not check any boxes, then what does this mean?

"On last year's filing, I checked the box to not transfer the NOL to this year and this year, 2020; however my client can use the loss carryforward. Is there a process to "uncheck" the box and bring the loss forward?

[sjrcpa · Accepted solution]

It is too late to do a 1045 for 2019. You would need to do a 1040X.

[TaxGuyBill]

Due to retroactive law changes, the 'default' is that the 2019 NOL is carried BACK 5 years.  As was mentioned, it is too late to file a 1045, so amending those prior years with a 1040X is how you would claim the carryback.

However, if the 2020 tax return has been extended, you still have the option to "waive the carryback" for the 2019 NOL, in which case it would be carried to the 2020 tax return.