2010 NOL never claimed

[HV Ken]

New client had NOL in 2010 never filed 1045 nor made election to carryforward. We spoke with the IRS today, and the agent said they could file an amended return for 2010, including the 1045, and could take the loss back two years to 2008, even though the year is closed for a normal amended return.

We are looking for confirmation that we can really do this and go back to a closed year (2008), even if we file all of this after 4/15/13.

Thanks!

[Maribeth]

If the year of the loss is still open, you can carryback the NOL to the prior two years.

2010 is open until at least 4/15/14.

You do not amend the 2010 return. You amend the 2008 and the 2009 return (using 1040X) to carryback the NOL to those years.

You can only use the 1045 within the 12 months following the end of the loss year. For example, in your case, you would have had to file the 1045 by 12/31/11 in order to use that simplifed method.

[HV Ken]

You can only use the 1045 within the 12 months following the end of the loss year. For example, in your case, you would have had to file the 1045 by 12/31/11 in order to use that simplifed method.

Interesting - that is not what the IRS agent told us. What you are saying is he is out of luck if he did not file the 1045 by 12/31/11.

[HV Ken]

Interesting - that is not what the IRS agent told us. What you are saying is he is out of luck if he did not file the 1045 by 12/31/11.

Maybe he is not out of luck after all! From Pub 536:

If you carry back your NOL, you can use either Form 1045 or Form 1040X. You can get your refund faster by using Form 1045, but you have a shorter time to file it.

　

If you do not file Form 1045, you can file Form 1040X to get a refund of tax be-cause of an NOL carryback. File Form 1040X within 3 years after the due date, including ex-tensions, for filing the return for the NOL year. For example, if you are a calendar year tax-payer and filed your 2010 return by the April 15, 2011, due date, you must file a claim for refund of 2007 tax because of an NOL carryback from 2010 by April 15, 2014.

[Maribeth]

Which is what I said. I was trying to show you the difference between the 1045 and the 1040X. The 1045 can be only used within the 12 months after the loss year. The 1040X has to be used thereafter.

You can use the 1045 as a supporting schedule to the 1040X. It will help if you have intervening years.

[HV Ken]

Which is what I said. I was trying to show you the difference between the 1045 and the 1040X. The 1045 can be only used within the 12 months after the loss year. The 1040X has to be used thereafter.

You can use the 1045 as a supporting schedule to the 1040X. It will help if you have intervening years.

Thanks for the clarification and confirmation Maribeth!