I have had to amend a client's 2011 1040 with a large 4797 loss which caused a NOL. Because the original 1040 had been late-filed, I took the loss back 2 years, and there is still more to carry forward and apply for 2012. The 2012 1040 is also being filed late and has another substantial loss which will be a separate NOL.
Question: There is no point in carrying the 2012 NOL back to 2010 and 2011 because of the prior NOL carryback, but because it is late-filed am I obligated to do so?
Thanks for any help.
AMENDED QUESTION: Sheesh!! This is really confusing. After reading another post on an NOL, I'm wondering if I can skip the 2011 carryback to 2009. I assumed that I would have to since the carryforward deadline was past. Can I carryback 1 year to the 2010 1040X, for which (I believe) the refund statute would be 10-15-14.
OR...can I just carryforward the 2011 loss to 2012 and file a 1040X for 2012.
OR...is this all a lost cause?
Thanks.