You have a fairly involved tax situation in which a one on one with a tax professional is the best course of action. I will provide my thoughts on the NOL matter, with your limited facts and brief research:
- Had your 2018 return been timely filed, there were no elections available for the NOL. The TCJA eliminated the carryback; so there was only the option of carrying forward any NOL (there were a few exceptions that do not apply here).
- The CARES Act temporarily reinstated a 5-year carryback for NOLs generated in 2018, 2019 and 2020. There is no mention of being timely filed.
- So in general, I believe your 2018 NOL would be subject to the 5-year carryback and the rules stipulate that the NOL must be carried back to the earliest year.
- Revenue Procedure 2020-24 provides provisions where a taxpayer can waive the carryback provisions under the CARES Act. There are not sufficient facts to determine if you qualify for this potential waiver of the carryback for your 2018 NOL.
- Just logistically, you have just paper filed your 2018 tax return. Based on the fact that the IRS has millions of unprocessed tax returns, who knows when your return will be processed.
- Now you would be attempting to file amended returns for the 2018 NOL, it is possible that those returns could be processed before the IRS processes your actual 2018 tax return. This would open up a huge quagmire of a letter writing campaign with the IRS.
- While I do believe you are eligible for the 5-year carryback of the 2018 NOL, you need to visit with a tax professional, provide this individual with all your facts and determine a best course of action to proceed.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
