New NOL rules ?

[Kram BergGold]

We elected to forego the 2008 carryback of an NOL to 2006. Now with the new rules the option of going back to 2003 years is attractive. Do the new rules contain a provision that allows us to ignore the prior election not to carryback?

[TaxmannEA]

Too late?

I think that the amendment to change the election needed to be filed by 10/15/09. The guidance is a little confusing on this point.

[Zee]

We elected to forego the 2008 carryback of an NOL to 2006. Now with the new rules the option of going back to 2003 years is attractive. Do the new rules contain a provision that allows us to ignore the prior election not to carryback?

Here's a link to the Revenue Prov that might help you:

http://www.taxalmanac.org/index.php/Rev._Proc._2009-52

See the following section:

08 Section 13(e)(4) of the Act provides that a taxpayer that has elected under §§ 172(b)(3) or 810(b)(3) to forgo a carryback for a loss for a taxable year ending before the date of enactment of the Act (November 6, 2009) may revoke that election before the due date (including extensions) for filing the return for the taxpayer’s last taxable year beginning in 2009. An application under § 6411(a) for the applicable NOL is treated as timely if filed before that due date.