in search box type NOL election.
the TCJA eliminated the NOL c/b for years starting in 2018. prior to this it was 2 years and even 3 years earlier on. as far back as the tax laws go the C/B of an NOL was required unless an election to waive the carryback was included with a timely filed return including a timely filed extended return. The CARES Act superseded the TCJA and allowed a 5 year carryback
Losses do not carry naturally forward.
Now I might in time incur penalties if I do not file the Form 1045?
(Which of course I will-file the 1045)
But the whole "MUST fill out the 1045" after October 15, 2021 is not right, an extra punishment of sorts.
for a 2020 NOL you have until 12/31/2021 to file it (make sure it's postmarked timely)
failure to file the 1045 by the above date does not mean you lose the 2020 NOL. Just that you have to switch to form 1040-X. one for each C/B year. for the 1040-X for a 2020 NOL, you have until 5/17/2024 to file.
the only penalty for not filing in a timely manner is the loss of some or all of the NOL and the tax benefit that it would produce because the statute of limitations will run for the oldest years. No other penalty. Also, there are no penalties if you decline to claim the NOL.
many taxpayers that start a new business do consult with a tax pro for the first year and let them do the return. they learn from this. many laws besides tax laws that they are subject to are not obvious and failure to abide can lead to nig trouble down the road. also, they get insight into return prep so they can do next year's return. they also learn of other things outside of taxes that may be required of their business or themselves - sales tax registration, business licenses, insurance.
