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There's still time to claim a 5-year NOL carryback for 2009 or 2008

August 23, 2010

The IRS has issued a FAQ covering the temporary five-year net operating loss carryback rules that apply for 2008 and 2009 tax years. Here's an important bit:

Q8. When is the deadline for taking advantage of this NOL provision?

A. You must make a WHBAA election by the due date (including extensions) for filing the tax return for your last taxable year beginning in 2009. This is true whether you make the election for losses incurred in 2008 or 2009.

If you file your 2009 tax return on time (by the due date without extensions) without making the election, you have an additional six months from the normal (unextended) due date of the 2009 tax return to make the election. See Treas. Reg. 301.9100-2 for the requirements for getting this six-month extension.

For example, an individual who files a calendar 2009 tax return by April 15, 2010, without making the election has until Oct. 15, 2010, to make the election for either 2008 or 2009 losses.

Calendar-year C corporations have until September 15 to make the election.

Tags: Net operating loss.NOL.

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