As part of the American Recovery and Reinvestment Act, small businesses with a net operating loss in 2008 may elect to offset this loss against income earned in up to five prior years instead of two.
The deadline to make the election to use this special carryback is April 17, 2009.
See links in the Resource Box to these IRS resources:
- IR-2009-26, New Law Extends Net Operating Loss Carryback for Small Businesses; IRS to Ensure Refunds Paid Timely
- Questions and Answers for ARRA – Section 1211 5-year Net Operating Loss Carryback Election for Small Businesses
Remember, if you carry the loss back more than three years, you’re re-opening a closed year to audit. Weigh the risks.)
- Ask TaxMama :: Where taxes are fun and answers are free
- www.TaxQuips.com :: The number ONE free tax podcast online
- IRS Fact Sheets :: Net Operating Loss Carryback, Sec. 179 Deduction and Other ARRA Business Provisions
- IR-2009-26, :: New Law Extends Net Operating Loss Carryback for Small Businesses
- IRS Q&A :: Section 1211 5-year Net Operating Loss Carryback Election for Small Businesses
