Client filed their 2015, 1120 late in March 2017. They have a $76,000 NOL. Per NOL rules, can we carry back the loss to 2013 and 2014 then carry forward any leftover loss. I pulled IRS “Account” transcripts for several years. All years note an extension was filed Except 2015. Taxpayer provided a Form 7004 with their tax information and state they did timely file the extension but cannot find their USPO certified receipt.
Preliminary information reviewed states an NOL is allowable up to the filing date including extensions of the loss year. If they have a legitimate extension, this would put our 1120x deadline as March 15, 2019.
1) Do they need to file an extension in order to get the extra time for filing the claim?
2) Can we carry back the NOL to 2013 and 2014 to claim the some of the taxes paid in those years?
This is aside from the fact that their actual statute of limitations for 2015 starts April 2017.
there is no “new” extension that is filed at this time – the carryback dates are determined by the original filing dates, and not the extension date – i.e. if there was an extension filed to say October of some year, but the return was filed prior to that date, the filing date is the one you need to pay attention to.