cancel
Showing results for 
Search instead for 
Did you mean: 
Level 1

Can NOL year be amended due to next prior year NOL carryover and also the prior NOL year

I appreciate your kind efforts to help me and looking further into forum per my request. I 100% agree on privacy issue.   Today, I feel fairly confident about my numbers  and ready to e-file for 2016. I will tackle AMT for 2016 by October with better understanding of it.

I understand that 1040x are filed for refund, but I have none, so I would hold for my own bookkeeping and same for California. However, I would summarize the c/b and c/f in comment filed of NOL Carryforward for this accumulated large NOL single number.
Level 2

Can NOL year be amended due to next prior year NOL carryover and also the prior NOL year

Similar question except that my NOL is arising from a 2016 amended tax return. An election was not made to forego the carryback on the return as originally filed as there was no NOL when 2016 was originally filed and, thus, no need for an election. Tax years 2014 and 2015 are now closed. Am I still required to carry the NOL back to 2014 and then 2015 since it is too late to forego the carryback on the 2016 amended return? If so, this carryback would generate a refund for 2014. Would a refund be issued for a closed year? Or...is there a way to just carry the NOL forward to 2017 without dealing with 2014 and 2015 since we couldn't possibly have elected to forego the carryback in a timely manner since there was no NOL when filed? Thanks in advance for any assistance you can provide.

Highlighted
Level 11

Can NOL year be amended due to next prior year NOL carryover and also the prior NOL year

In those past years, the statute of limitations for refund purposes of an NOL, followed the 2016 statute of limitations.  Thus, if an NOL from 2016 was carried back into 2014, and was filed timely before April 15, 2019, a refund would be issued.

 

The question becomes:

 

1.  I believe you have to carryback the NOL to 2014 and 2015, as the time period to waive the carryback has expired.

 

2.  This should have been filed by April 15, 2019.  The statute of limitations for 2016 expired on April 15, 2019 (in general; certain exceptions may exist, but generally in favor of IRS, such as audit adjustments 3 years from the date the original return was filed).

 

3. If you have not filed the amended return for 2016 by April 15, 2019, if the NOL from 2016 is large enough, you should do the computations to compute the 2016 NOL;

then compute what happens if carried back to 2014 and 2015...and if there is some NOL leftover, than you could carry that remaining amount forward to 2017

 

Here is a link to Pub 536 for 2016 for further information and help.