Thank you so much for the limited thoughts you could give, given my limited facts and brief research.
I looked through Revenue Procedure 2020-24, and its section 4.01(1) states: "Elections to waive carryback... for a NOL arising in a taxable year beginning in 2018 or 2019... must be made no later than due the date, including extensions, for filing the taxpayer's Federal income tax return for the first taxable year ending after March 27, 2020." So, I think I'm ineligible for this.
Regarding the mechanics I skipped in my original post, since I wanted to see which way I'd likely have to go with the carryback...
I haven't filed my 2016 tax return yet. Some of the 2018 NOL will remain unused by 2013-2015. I'm about to file my 2016. On 2016, tax will be owed. Less tax will be owed with the NOL carryback, but certainly less than would be owed without it. I'd usually at this point file a 1040X to use the NOL in 2016, but that doesn't seem to make sense since my 2016 isn't filed. I guess I could enclose in the same mailing a 2016 return and a 2016 1040-X, but I'm thinking it makes more sense to just file a 2016 return and use the portion of the NOL carryback remaining and usable on the 2016 Schedule 1 line for "Other Income", where a NOL carryforward would typically go. I'm thinking along with that, I'd attach a statement describing all facts about the NOL, including how it is calculated, and maybe even attach a copy to that statement of the 2018 return showing the NOL generated -- marking each and every page extremely visibly saying it was already filed separately, is not to be processed as a return, and is attached only as a copy to show how the NOL was generated.
Carrying forward the strong suggestion of meeting with a tax professional, does my idea of just filing a 2016 return with the NOL carryback on Schedule 1 Other Income with a statement seem wrong?
