Just finished an IRS audit going on over a year.. The taxpayer was a C Corp. with a NOL going back 16 years. The agent wanted to see the actual year of the NOL which was 16 years ago.
Client lost the files and several other things in a fire years ago and subsequent water damage by the fire dept. I no longer have the files as I told the client I was going to destroy records over 10 years old unless they wanted them and they declined.
The IRS position was that if we could not produce the file, there is no NOL. I asked the IRS to get the file as they have records. IRS said they can't find them, it is not their problem.
As it turned out, the agent got really behind and just issued a no change. whew!
Moral of the story-KEEP all records of NOL losses and CAPITAL LOSSES. The tax authorities have the right to see the return of the year these originate.
Client lost the files and several other things in a fire years ago and subsequent water damage by the fire dept. I no longer have the files as I told the client I was going to destroy records over 10 years old unless they wanted them and they declined.
The IRS position was that if we could not produce the file, there is no NOL. I asked the IRS to get the file as they have records. IRS said they can't find them, it is not their problem.
As it turned out, the agent got really behind and just issued a no change. whew!
Moral of the story-KEEP all records of NOL losses and CAPITAL LOSSES. The tax authorities have the right to see the return of the year these originate.
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