what's 11ZZ? that could be anything
as for 1256 loss carryback, there is no requirement to c/b the loss that's for the taxpayer to decide provided they qualify. the loss c/b may be limited and is first carried back to the 3rd prior year
form 6781 instructions
The amount you can carry back to any prior year is limited to the smaller of:
• The gain, if any, that you would report on line 16 of Schedule D (Form 1040) for that carryback year if only gains and losses from section 1256 contracts were taken into account; or
• The gain, if any, reported on line 16 of Schedule D (Form 1040) for that carryback year.
The amounts just described are figured prior to any carryback from the loss year. Also, the carryback is allowed only to the extent it doesn’t increase or produce a net operating loss for the carryback year. The loss is carried to the earliest year first.
