For most taxpayers, NOLs arising in tax years ending after 2020 can only be carried forward. See Net operating losses for more information.
For tax year 2020 and prior, if a corporation has an NOL, it can usually elect to waive the entire carryback period for the NOL and carry the NOL to future tax years. To do this, you need to check the box on Schedule K, line 11 and file the return by the due date, including extensions. The corporation must have a current year NOL for Schedule K, line 11 to check.
You can elect to....
- Forego the carryback for a net operating loss (NOL) for a corporate return
- Waive the carryback for consolidated return per section 172(b)(3)
... in the Corporate return. Both of these options use the same steps.
Follow these steps to forego or waive an NOL carryback in the program:
- Go to Input Return ⮕ Deductions ⮕ Regular NOL Deduction.
- Check the box Forego carryback of 20XX NOL.
If the checkbox labeled Waive net operating loss carryback period [172(b)(3)] under elections is checked, ProConnect will only check Form 1120, Schedule K, line 11 and won't proforma the NOL to the next tax year.