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.