What is a carryback claim?

Forum|Forum|3 years ago
August 11, 2023
6 replies
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TurboTax Online

ee-ea

Alumni - Champ

A carryback is the application of a tax loss to prior years in which taxable income was earned. The concept is used to earn an immediate tax refund from the Internal Revenue Service, thereby recovering taxes paid in prior years. In essence, application of the carryback has the same effect as though the taxpayer had overpaid taxes in prior years.

leighjohnsonnd19

Level 2

I just got a tax bill dated 8/2023 that states "based on the tentative carryback application or carryback claim you filed" for 2020 Form 1040. I have no knowledge of filing any such claim. I have not had an operating loss since opening my business in 2016, and I have paid all taxes due through 2022. There is not a loss reflected on my tax returns and I have not filed an amended tax return. When I log in to my IRS account there are no records or documentation other than a balance that has been added for 2020. Any thoughts? I haven't tried to call the IRS yet, but I'm not hopeful I'll get to speak to a real person.