Claimed NOL on Georgia Form 500 for tax year 2019.  NOL was carried foward from IRS form 1040.  There are no carrybacks in prior years on the Federal tax returns as computed on form 1040, only carry fowards.  Information was consistently transferred from Form 1040 to State form 500.  Note that the taxpayer's NOL was generated from Form 1120S and entered on Form 1040.  

In tax year 2019 the corporation produced a profit.  It was properly carried to the taxpayer's 1040 income tax form.  The cumulative NOL was computed and then transfered to State of GA form 500. The net NOL was noted on Form 1040.  The entire NOL is based on carry forward amounts.

The State of  Georgia disallowed the NOL citing that the carryback option may have been used in prior years and therefore the carry forward amount should be reduced accordingly.

A Form 500 NOL was submitted to State of GA Department of Revenue in accordance with request after the tax return for 2019 was submitted.  Note that this was the first year that the taxpayer's business had produced a profit.  Rather than accept the net carryfoward, the GA Department of Revenue proposed to deny the entire NOL amount shown on the State form 500.  Please that even if the amount calculated as the allowable NOL by the state, there woujld still be negative income reported to the State of GA on the tax return and therefore there would be no tax liability.

Intuit has failed to address this scenario in the tax income program for the accurate computation for the State of Georgia income tax liability.

Georgia has taken advantage of the vague instructions and forms it has provided in this instant case.  The information for clear instruction to provide an accurate rendering of the state tax liability is almost non existent.

Please provide any guidance on the proper computation.

Thanks for any assistance or guidance.