carryback

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carryback

n. in taxation accounting, using a current tax year's deductions, business losses or credits to refigure and amend a previously filed tax return to reduce the tax liability. (See: carryover)

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However, from a credit perspective, the corporate tax provisions are somewhat negative for the homebuilder sector due to the elimination of net operating loss (NOL) carrybacks.
This limitation on carrybacks applies to losses incurred in the year of the CERT and the two subsequent tax years.
The Treasury Inspector General for Tax Administration (TIGTA) found that IRS delays in processing net operating loss (NOL) carrybacks result in the IRS's paying millions of dollars in interest unnecessarily.
With regard to carrybacks, accountants should be aware of the following items.
There is no limit on carrybacks to the first four preceding years.
Section 38 currently permits a credit against the income tax for the sum of the business credit carryforwards carried to the taxable year, the amount of the current year business credit, and the business credit carrybacks carried to the taxable year.
Business taxpayers also are eligible for enhanced carrybacks of net operating losses.
Carrybacks are allowable but only for NOLs attributable to 2011 or later.
6501 (j) provides the same rule in the case of business credit carrybacks.
A procedure is available to claim a refund arising from carrybacks more quickly than by filing amended returns--Application for Tentative Refund (Form 1045) and Corporation Application for Tentative Refund (Form 1139).
In addition, the 90% of AMTI limitation is suspended for any AMT NOL attributable to carrybacks for which an extended carryback period is elected.
In 2002, Congress temporarily extended the general NOL carryback to five years (from two years), and also provided that an NOL deduction attributable to NOL carrybacks arising in taxable years ending in 2001 and 2002, as well as NOL carryforwards to these taxable years, may offset 100 percent of a taxpayer's Alternative Minimum Taxable Income (AMTI).