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NOL - waive carryback

Mainecat
Level 2

I have a client  who had a NOL in 2019.  A waiver was not filed with the original return and it looks like it would not be beneficial to carryback the 2019 NOL to the prior 5 years. 

Rev Proc 2020-24 states: (1) Elections to waive carryback under § 172(b)(3) for NOLs arising in taxable years beginning in 2018 or 2019. A taxpayer within the scope of this revenue procedure may elect under § 172(b)(3) to waive the carryback period for an NOL arising in a taxable year beginning in 2018 or 2019. Such an election must be made no later than the due date, including extensions, for filing the taxpayer’s Federal income tax return for the first taxable year ending after March 27, 2020. 

That language is confusing - Is it too late to make that election for the 2019 NOL?  I thought I read somewhere that you could make that election for the 2019 year on the 2020 Form 1040, but I can't find it again and when I look at the preliminary 2020 Proseries software, I don't see that it is an option.

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TaxGuyBill
Level 15

Yes, you are allowed to "waive the carryback" for a 2019 NOL when filing the 2020 tax return.

The last I hear, ProSeries was not yet set up for that.

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4 Replies 4
TaxGuyBill
Level 15

Yes, you are allowed to "waive the carryback" for a 2019 NOL when filing the 2020 tax return.

The last I hear, ProSeries was not yet set up for that.

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Mainecat
Level 2

I will keep an eye on Proseries for that change - thanks for the prompt response!

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CathyTax
Level 1

Does Proseries have 2018 and 2019 waive carryback election ready yet?  

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LesEdy
Level 3

Proseries has still not enabled 172(b)(3) elections to waive CARES Act 5-year carryback for 2018, 2019 and/or 2020 NOL's. I made a fuss at high levels, and have some hope that they will fix this, especially since the current software provides flat-out incorrect information (i.e., reference to election only being for farm and insurance NOL's, that is old law) on the election screen and in Tax Help.

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