Monday, August 24, 2009
2008 NOLs carryback
Net operating losses. Because of the economic downturn, many businesses are in a loss position. The Tax Code generally allows eligible taxpayers to carry back net operating losses (NOLs) two years with some exceptions. The new law increases the carryback period to five years for small businesses (which the new law defines as businesses with average gross receipts of $15million or less). The treatment is also temporary, applying only to 2008 NOLs. Businesses that qualifying can apply for an immediate refund of taxes paid during the extended carryback period.