Just for clarity, I cannot choose which years (of the previous 5) to apply the NOL, correct? For a 2019 NOL carryback, I need to complete a 1040X for year 2014, then 2015, etc. until/unless the NOL is used up.
correct
And, would I complete a 1040X for 2019 as well to indicate that the NOL was carried back?
no
As a last question, I am under the impression that a taxpayer has only 3 years to file an amended tax return. Did the CARES Act waive that time limit for this scenario? Thanks so much!
IRC section 172(b)(1) NOL carryback rule
(D)Special rule for losses arising in 2018, 2019, and 2020
(i)In general
In the case of any net operating loss arising in a taxable year beginning after December 31, 2017, and before January 1, 2021—
(I)such loss shall be a net operating loss carryback to each of the 5 taxable years preceding the taxable year of such loss, and
(II)subparagraphs (B) and (C)(i) shall not apply. (the old carryback rule)
