Thursday, December 10, 2009

Net Operating Losses Period Extended by Law

Early last month, legislation was passed and signed into law extending the period to which net operating losses (NOLs) sustained in 2008 or 2009 may be carried:


As a result, the NOLs incurred in either year (but not both) may be carried back to the fifth taxable year preceding the taxable year in which the NOL was suffered.1 Traditionally, the NOLs may be carried back only two years.

There are a few exceptions written into the new tax law with which companies should be familiar: two that are spelled out in the provisions and one that requires a little more digging into tax law from the 1980s that relates to the RJR Nabisco leveraged buyout and so-called corporate equity reduction transactions, or CERTs.


In order to evaluate your company's ability to take advantage of this and other tax legislation, please contact REDW's tax team.


The information contained in this blog is not intended to be tax advice, is of a general nature, and is based on authorities that are subject to change. Application to your specific situation should be determined in consultation with your tax advisor. IRS Circular 230 Disclosure: Any tax advice in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any matters addressed herein.
TAGS: Taxes
Posted at 6:52 AM | 0 Comments | Post a comment
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