Business tax return – Did not fill NOL summary, just each year's loss. Is that a problem?

Forum|Forum|2 years ago
February 12, 2024
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I have a small business as a Corporation. I have filed income tax returns form 1120 with IRS every year. I show the Net Operating Loss (NOL) as that year's loss. However, I have never filled history of NOLs (NOL Summary), just the NOL for that year. Would that a problem in future, when I have a profit and want to utilize earlier NOLs. would they look at all my history, or would they refer just to the NOL calculation I did. My calculation was not taking historical NOLs into consideration.

I would appreciate any insights or recommendations on whether not including the full NOL history in each tax return could potentially create complications in the future. I'd welcome your expertise.

Not A Product Question

Best answer by ThomasM125

You need to enter on line 12 of schedule K the Net Operation loss (NOL) carryover from the previous year. That will be the cumulative NOL that you will have available for the current year. If that number is not correct on the previous Form 1120 that you filed, you can enter the correct number on this year's form. Just make sure you have documentation in your files to support the number in case of an audit.