Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has issued guidance describing when and how taxpayers can elect to carry back applicable net operating losses (NOLs) under relief provided by section 13 of the Worker, Homeownership, and Business Assistance Act of 2009 (P.L. 111-92). Section 13 of the Act amended Code Sec. 172(b)(1)(H) to allow taxpayers to elect to carry back applicable NOLs for a period of three, four or five years, or a loss from operation for four or five years, to offset taxable income in those previous years. In addition, section 13 amended Code Sec. 810(b) to allow losses from the operations of life insurance companies to be treated in the same manner as NOLs.

  Any NOL or loss from operations carried back five years can only offset a maximum of 50 percent of the taxpayer's taxable income for that fifth preceding year. This relief is available to all taxpayers with business losses except those that received payments under the Troubled Asset Relief Program (TARP), and applies to taxpayers that incurred NOLs or losses from operations in tax years ending after December 31, 2007, and before January 1, 2010.

IR-2009-105,
2009FED ¶46,533

Rev. Proc. 2009-52, 2009FED ¶46,534

Other References:

 
Code Sec. 172

  CCH Reference - 2009FED ¶12,014.3245

  CCH Reference - 2009FED ¶12,014.331

 
Code Sec. 810

  CCH Reference - 2009FED ¶25,879.85

  Tax Research Consultant

  CCH Reference - TRC BUSEXP: 45,154
CCH Reference - TRC NOL: 6,154.15
CCH Reference - TRC NOL: 12,103.15