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Can I carry an NOL Carryback to the 3rd previous year if we cannot get info from 5th year back?

A client had NOL's in 2018 & 2019. We want to carry them back under CARES, but the client is unable to get a copy of his return for the 5th preceding year. Has anyone tried to carry back to 3rd or 4th preceding year, skipping the 5th?

I am trying to recreate his 2017 tax return to do an amendment to claim the NOL. The entire NOL will be absorbed that year. I just don't see how its possible to carry the loss back to the 5th preceding year in this situation. 

Any insight is appreciated!

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5 Comments 5
Level 15

IRS will reject it if you don't go back 5 years.


Any ideas of a solution in this situation?

The earliest year that he was able to get a transcript for was 2017. He was in an accident that year and he and his wife divorced. He has no idea how to access the tax return for any year prior to 2017. 

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Also, the returns for any years prior to 2017 were MFJ and he doesn't even know where to find his ex-wife. I was hoping I could submit the 2017 return and beg for some understanding. 

He's paying $600 a month in taxes on his 2017 liability so he was really hoping that the CARES carryback would alleviate that for him. 

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Level 15

Was it a DIY divorce so he would not have had to provide copies of tax returns to her through his lawyer, who might still have them?  Was he self-employed in 2014?  Is he sure he had a profit that year?  He can't use the wife's income for the NOL refund.  Were they preparing their own returns (and not keeping a copy)?

I don't know that transcripts will help, since they won't show how much of the tax is attributable to each spouse.  

Level 15

https://www.irs.gov/newsroom/what-taxpayers-should-know-about-tax-return-copies-and-transcripts order copies of the tax returns for $50/year - Form 4506. Even though they say 6 years, order more years if you need them. 

Actually I have a client in non compliance and I was able to get transcripts back to 2008. They are in the computer, but IRS only begrudgingly will get them. SEND MONEY FOR ALL THE YEARS YOU NEED. 

Here's wishing you many Happy Returns