Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 06-01-2015, 10:46 PM
Junior Member
 
Join Date: Jun 2015
Posts: 1
Cool Nol Carryforward not elected - help please!

In reviewing the 2013 tax return of a client, I realized I did not check the box to elect the NOL carryforward. How do I correct this? File an amended 2013 return with the box checked? We were expecting to amend the return with additional information and had planned on deciding how to carry the NOL but the anticipated information did not come. We do not want to carry the loss back.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 06-02-2015, 06:42 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,230
In reviewing the 2013 tax return of a client, I realized I did not check the box to elect the NOL carryforward. ======>>>>>>>>>Then the IRS assumes you are carrying back the 2013NOL back to 2011/2012. The IRS generally requires your NOL to be carried backto 2 or 3 years,depeding on situation before it can be carried forward, but carrying back your NOL often creates a problem for you since the years a loss is carried back must be amended to apply the loss before any remaining portions may be carried forward. However, you may waive the c/b rules by attaching a statement to the tax return that the NOL is generated. You may only do this in the year of 2013 you generate the NOL. Since you did not attach the statement to 2013 original return, you had to amend the 2013 return and attach the statement within 6 months of the original 2013 return's due date. It is too late; You had to attach a separate election statement to the return for 2013 in order to make a valid election. The election must be made by the due date including extensions for filing the 2013 return.



How do I correct this? File an amended 2013 return with the box checked?=====>>>>>>>>>. It is too late. Once the election is made, it is generally irrevocable.I guess you may contact the IRS but not sure of it.

We were expecting to amend the return with additional information and had planned on deciding how to carry the NOL but the anticipated information did not come. ====>>>>>As mentioned above.

We do not want to carry the loss back.=====>>>>>>>>>>>
In some cases, carrying the NOL back to the 2or 3 or 4 ,depending on situations preceding tax years may not result in its best utilization, even if you had significant income in those years IF the income could have been taxed at lower rates due to capital gain or qualified dividends. Then you may benefit in these circumstances by electing to waive the carryback period. This is an all-or-nothing election. An election to forgo the c/b period applies to both the regular tax NOL and the AMT NOL. If you attempt to make a split election , for example say you want to forgo the AMT NOL, but not the regular tax NOL, then the entire election could be held invalid because it is ambiguous and equivocal on its face.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Proof of NOL CarryForward kentwoodjean Sole-Proprietorship 1 03-25-2015 07:07 PM
NOL Carryforward mka1114 For 2014 0 02-12-2015 01:44 AM
Utilization of NOL Carryforward [email protected] Miscellaneous 2 02-12-2014 11:47 PM
Some questions concerning NOL carryforward mellonpo Sole-Proprietorship 7 07-21-2012 02:01 PM
Net Losses Carryforward? chrisk C-Corporation 1 01-18-2007 10:27 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning