It also touches on net operating losses (NOLs) and the effect of carryforwards and carrybacks
on the regular tax system and the AMT system.
In Doyle, Dane, Bernbach, Inc., 79 TC 101 (1982), the facts also pertained to a refund claim generated from New York NOL carrybacks
. The Tax Court reasoned that the New York State Tax Commission has the right under law to review any refund claim before determining whether to allow it.
The regulations provide tough rules for the application of the three previously described accuracy-related penalties in the context or carrybacks
1.1502-21.When considering carrybacks
and carryovers, the apportionment rules apply only if the loss would be carried over to a separate return year, a condition not present in United Dominion.
Furthermore, in the case of a net operating loss carryback
, a capital loss carryback
, or one of the credit carrybacks
discussed in the preceding paragraph, a variation of the 45-day rule under section 6611(e) applies, so that no interest is payable if the overpayment attributable to such a carryback
is refunded within 45 days of the date when the claim for such overpayment is filed.
and/or carryforwards have been allowed, expanded, or removed from the Code numerous times.
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.
In computing the limitation base for charitable contributions, however, any NOL carrybacks
are not taken into account (IRC section 170[b][l][G]).
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.