NOL Carryback

[Possi]

I haven't done a NOL Carryback. I did a couple of carryforwards, but that would not benefit my client in this situation.
I have read up on it in TTB and IRS instructions for form 1045, and searched this board on the topic but I'd like some advise from others who have done them.
There are 2 ways I can do this. The easiest seems to be the 1045. The other way is to file an amended return.
If I file the 1040x, won't I still have to do the 1045?
What would you more experienced and brilliant people suggest?

[Harvey Lucas]

1045

It used to be that if it is within 12 months from due date of loss year 1040, then you file on a 1045....1045 is quick and easy...

HarveyLucas

[geekgirldany]

even if you file amended returns you still have to do the 1045 but on Schedule B. I did this a year or so ago. Very very time cosuming carrying it back so many years. Got client back a hefty refund though. I got a worksheet from the NATP that helped me alot. Its basically is on Sche B of 1045 but in a better way to understand and track the losses. I know I looked at doing a 1045 quickie. I couldn't though due to the rules. Don't remember right now. Hopefully I am recalling this correctly. I've had the flu the past 4 days

[rosieea]

Use the 1045 if you file within one year of the NOL year. It's no big deal, and if your software doesn't do the hard work, I'd consider changing to a decent package.

[Matt Sova]

1045

If it is within the time frame, you want to do a 1045. The IRS deals with 1040X's when they get around to them.

When I do a 1045 I go back 2 years in my software and run the return again with the NOL. Many times it will trigger other things like a refund of the child tax credit and you need to attach that form to the 1045.

Matt

[Possi]

1045 It is!

Thank you for your input. Taxwise made it so simple I thought surely this wasn't the right thing to do!
Thanks for all your input.

[BOB W]

Be sure to...........

............. include 6251 for each year or they will kick it back to you.

[Possi]

one year

I'm only going back one year. That will take care of it~about 17k.
I looked at the 6251 that Taxwise pulled up, and I don't see that it is required. There was no AMT or Sch D loss. Does every 1045 require it?

[Matt Sova]

No

I have never included it unless necessary. Remember you have to carry the loss back to 03 first.

[BOB W]

I always..........

............. ran into trouble by not including it even when it looked liked I didn't need it. Carrybacks can cause a 6251 in the carryback year. But I was doing large NOL ($750,000 & 245,000) carrybacks and that was when 5yr carrybacks were allowed a few years ago. They were no fun. IRS made some correction before it was finalized.

[Possi]

Thanks, Matt

I have never included it unless necessary. Remember you have to carry the loss back to 03 first.

Thanks for the reminder. I was just about to mess this one up. Read the instructions once again. So glad I'm not working "alone!"

whew...