"What if I have no or too little income in the 5 y prior to 2020 to absorb the 2020NOL?
Will it automatically bounce forward into 2021?
You carry it back to the first tax year.....5 yr prior.....and any unused part of the loss gets carried to the next tax year and then the next and so on. It doesn't bounce from 5 yrs back to 2021."
That part I understood. That it goes consecutively applying to the farthest y back.
I understood it's not a cherry picking thing for years.
What happens though if one does nothing?
Like if one does not elect to waive carry back?
Like if one also does not attach the 1045s for the 5-y Cares Act carry back?
Like files nor 1045s,
nor amended tax returns for the 5 y previous
(for which amendments there is 2 years longer time than deadline Dec 31, 2021 for Forms 1045).
I can still make it timely for the 1045s to attach to my TY 2020 return because it is not yet Dec 31, 2021.
But let's say I don't attach the 1045s.
What actually happens next year if I enter my NOL forward in TY 2021?
As I intended to keep it all simple and less mind-boggling.
Plus I can use the 2020 NOL for 2021 because there was a bounce back in biz in 2021.
