Will Form 1120 C Nol 2023-2024

Hey, it's tax Cribs time from taxmama.com. Today, Tax Mama hears from Monty in the tax scripts forum who needs a little help. Let me paraphrase his question: when a corporation has net operating losses for two years in a row, in this case, 2008 and 2009, how do you handle carrying back the net operating losses? Well, Monty, when you have a large net operating loss, you may be permitted to use that loss to get refunds from taxes the corporation paid in the good years. Starting with the 2008 NOL, carry it back as far as you're permitted. If you have a big enough loss from 2008 that you could not use it up in 2005 and 2006, you carry the balance to 2007. See if you end up using it all up, that's what you need to do first. The corporate application for tentative refund form, Form 1139, has room to use the net operating loss for three years at a time. Then, if there is anything left, it goes forward to 2008 and 2009, where you obviously don't need it because you have net operating losses. Then on to 2010. Okay, then you have the new loss in 2009. If there's still any income left in the earlier years that hasn't been reduced by the 2008 net operating loss carrybacks, yes, prepare a new Form 1139. You would prepare a new Form 1139 for each year where the losses originated. If there are no years to which you can carry losses back, you must make an election to forego the net operating loss carry-back on the current tax return and send the losses forward. Be sure to attach a worksheet to the future corporate tax returns to show the source of the losses and how much was used up in...