1040 NOL Carryback

[ed_accountant]

I have new client that wants to file year 2010 and has business net operating loss.

He still owes income taxes in years 2009 and 2008.

Client wants to know if he can still carryback back the 2010 net operating loss to prior years?

Does the statute of limitation effect the carryback?

Thanks

[kcjenkins]

Will this be the ORIGINAL RETURN for 2010?

[ed_accountant]

Yes, this will be an original late return with a business loss. This person has not filed since 2009.

Thanks

[ed_accountant]

I got the answer from the IRS tax practictioner's help line..

Yes, my client can claim carryback a 2010 NOL loss to years 2008 & 2009. The statute of limitations for year 2010 is April 15, 2014.

I can carryback the 2010 loss to years 2008 & 2009 by filing an amended return for those years before the statute date of 4/15/14.

Thanks

[Mr. Pencil]

I have new client that wants to file year 2010 and has business net operating loss.

He still owes income taxes in years 2009 and 2008.

Client wants to know if he can still carryback back the 2010 net operating loss to prior years?

Does the statute of limitation effect the carryback?

Thanks

He can carry it back. It may not help as much as he hopes, because it can not reduce SE tax or penalty/interest. And of course no help at all on the California return, at least until 2013.. Also, since it's too late to file Form 1045, you have to use 1040X which opens up 2008 and 2009 to audit again.