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Old 09-25-2016, 08:42 PM
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How to Apply NOL Carryback with regard to Penalties on unpaid taxes????

I have never filed taxes for 2012. The taxes I likely owe for that year (prior to interest and failure to file penalties ) are approximately $5000.

In 2014 I had an NOL (on line 41) of approximately $6000.

My plan is to carryback the 2014 NOL using form 1040x.

2 main questions:
1. Since I am filing the returns for 2012 for the very first time , should I attach 1040x at the same time that I file this return , or should I wait until the first set of 2012 returns have been processed? My understanding is that form 1040x is meant to amend the first set of returns

2. How will the amount of the NOL work with regards to late filing penalties for the 2012 taxes? Will the penalties and interest for the unpaid taxes from 2012 be computed first , and then the NOL from 2014 is applied to the total balance (taxes plus penalties less the NOL)? Or can the NOL from 2014 be applied directly to what taxes would have been due back in 2012? If the latter is the case, then there would presumably be no tax due and therefore no penalties.... (Since my 2014 NOL is more than my 2012 tax) . I am looking at the form but don't see where possible penalties figure into 1040x.....

In very confused as to how to handle this!



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Old 09-26-2016, 09:57 AM
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My plan is to carryback the 2014 NOL using form 1040x.=> With a carryback, the NOL is first carried back to the second tax year preceding the loss year (in this case, 2012), then to the next earliest carryback year (2013). If the NOL is not totally used in 2012, the balance would come forward to 2013.


2 main questions:
1. Since I am filing the returns for 2012 for the very first time , should I attach 1040x at the same time that I file this return , or should I wait until the first set of 2012 returns have been processed? My understanding is that form 1040x is meant to amend the first set of returns >>Since you never filed your 2012 return at that time, you need to file the past return of 2012If the IRS accepts your return, however, then you have to wait longer until it has been fully processed. THEN you can prepare an amended tax return and mail it in. You cannot e-file an amended return. They have to be mailed,




2. How will the amount of the NOL work with regards to late filing penalties for the 2012 taxes? Will the penalties and interest for the unpaid taxes from 2012 be computed first , and then the NOL from 2014 is applied to the total balance (taxes plus penalties less the NOL)? Or can the NOL from 2014 be applied directly to what taxes would have been due back in 2012? If the latter is the case, then there would presumably be no tax due and therefore no penalties.... (Since my 2014 NOL is more than my 2012 tax) . I am looking at the form but don't see where possible penalties figure into 1040x.....=>> Asfaras I know, the penalties and interest for the unpaid taxes from 2012?d be computed first , and then the NOL from 2014 is applied to the total balance (taxes plus penalties less the NOL). Please contact the IRS for more info in detail.



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Old 09-26-2016, 07:45 PM
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Thank you so much for your help. I had called the IRS originally but the agent on the phone (who was mainly speaking with me regarding establishing a timeline as to when I would be filing the 2012 return) , said they couldn't answer any questions regarding tax law as it was not within the filing period. Is this true? I really cant ask them any specific questions regarding forms for 2012? If not true then who there (which IRS department) should I be contacting ?
Thanks again!



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