Question

NOL Carryback

Forum|Forum|4 years ago
October 28, 2021
1 reply
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I have a 2019 NOL that I'd like to carryback, per the CARES Act. I didn't file the 1045 within the correct time frame, so I believe I should file a 1040X in order to request the carryback. Can someone provide more details on how that is done? Specifically, would I then complete a 1040X for 2019 and each of the five years preceding (2014-2018)? In this case, is the 3-year time allotment to file an amended return waived?

Not A Product Question

M

Mike9241

you would need to create a 1040-X for 2014, then a 1040-X for 2015 and so on. how to do this in Turbotax is the question. in theory, neither Turbotax nor the IRS may no longer retain a copy of the 2014 return. don't know what Turbotax is going to permit. for example, 2014 is no longer supported by TT so how does one amend it.

contact Turbotax support. threads concerning amending 2014 are old.

5am-5pm Pacific Time (8-8 Eastern) Monday - Friday
https://support.turbotax.intuit.com/contact

800-446-8848

8

8256931Author

Thanks for your answer. I don't mind completing the 1040X forms by hand. Just for clarity, I cannot choose which years (of the previous 5) to apply the NOL, correct? For a 2019 NOL carryback, I need to complete a 1040X for year 2014, then 2015, etc. until/unless the NOL is used up. Is that correct? I can't start with 2017 as my largest earnings year, right? And, would I complete a 1040X for 2019 as well to indicate that the NOL was carried back? As a last question, I am under the impression that a taxpayer has only 3 years to file an amended tax return. Did the CARES Act waive that time limit for this scenario? Thanks so much!

M

Mike9241

Just for clarity, I cannot choose which years (of the previous 5) to apply the NOL, correct? For a 2019 NOL carryback, I need to complete a 1040X for year 2014, then 2015, etc. until/unless the NOL is used up.

correct

And, would I complete a 1040X for 2019 as well to indicate that the NOL was carried back?

no

As a last question, I am under the impression that a taxpayer has only 3 years to file an amended tax return. Did the CARES Act waive that time limit for this scenario? Thanks so much!

IRC section 172(b)(1) NOL carryback rule

(D)Special rule for losses arising in 2018, 2019, and 2020
(i)In general
In the case of any net operating loss arising in a taxable year beginning after December 31, 2017, and before January 1, 2021—
(I)such loss shall be a net operating loss carryback to each of the 5 taxable years preceding the taxable year of such loss, and
(II)subparagraphs (B) and (C)(i) shall not apply. (the old carryback rule)