Late Filed Return with NOL

[equinecpa]

I have a client who filed their 2005 & 2006 returns late (filed both in 2009). The 2006 1040 has a farm nol-I was planning on carrying that forward to 2007 but just realized that I can't since the 2006 return was late filed. I've gone through the calculations to carryback the NOL to 2003 & 2004 and have a nol balance to be used up in tax year 2005. Can the taxpayer still claim a refund of 2005 income taxes considering this is a farm nol?

I'm thinking we're within the 3 year limitation: 2006 return extension was filed -it was due 10/15/07 -so the taxpayer has until 10/15/10 to get the NOL carryback claim filed?

[Richard]

I agree

I think you're correct. The statute of limitations is extended on closed years for impact from NOL. That extension is until the year generating the NOL closes.

But you need to hurry!