New Net Operating Loss Carryback Years

[OldJack]

Before you decide to carry back a net operating loss more than 2 years (under the new law) be sure and check with your state to see if they allow the net operating loss for more than 2 years. My state of Missouri requires you to file an amended return for federal adjustments due to any carrybacks, but disallows the NOL loss if more than 2 years, thereby not allowing any refunds for those prior years. A carryback for refund could actually result in you owing more state taxes in certain situations.

Although my current corporate client could have carried back 5 years federal we elected to only go 2 years since the result was more overall tax refund with a state refund.