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  • 1.  Carryback 2020 NOL

    Silver Most Valuable Member
    Posted 11-12-2024 03:35 PM

    New Client filing 2019-2023. Client has a large tax bill for 2019. 2020 has an NOL. Preferred option would be to carry back to 2019 and lessen the balance due. However, I believe the NOL has to be carried back 5 years to 2015. If that results in a refund hasn't the statute expired ? If so, is that NOL lost or would it be considered unused and C/F to 2016 ? There was no timely election made for 2020 to C/F so I assume it is automatically carried back ? Any thoughts or suggestions are welcomed. Thanks for taking the time to respond.



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    Peter R. Hall
    CPA
    HALL CPA GROUP
    Kings Park NY
    631-269-7500
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  • 2.  RE: Carryback 2020 NOL

    Platinum Most Valuable Member
    Posted 11-12-2024 09:25 PM

    Peter,

     

    I am going to step out on a limb, but here is how I see it.

     

    It is my understanding that with a 2020 nol, you MUST carry back.   The statue of limitation for a  year in which you have carried back to are governed by the YEAR IN WHICH THE LOSS OCCURRED.    Think about it. If the normal statue is three years, a carry back to the 5th year would never result in a benefit.

     

    With that said and the fact that 2020 would be a closed year  you have may have a problem.

     

    However, , IMHO the filing of the return triggers one statute, and the PAYING of the tax trigger yet another . so if the tax is paid with in two years, the statue is open to the extent of that tax payment.

     

     

     

     

    Abby Alhante,  CPA

     

    Kurcias  & Alhante, LLC  CPAs

    525 Broadhollow Road   Suite 104

    Melville NY  11747

    516.829-5890  Fax 516-829-3976

    Mobile 516-381-9301

    AbbyA@KurciasAlhanteCPAs.com

    ( E mail response preferred )verned by the  the year of the origination of

     






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The opinions expressed are the views of the author alone and should not be attributed to any other individual or entity and shall not constitute an accounting opinion.