NOL with AMT help

[mhcpa1964]

Hello all,

S corp client wants to carry back their 2020 loss. They have enough 2015 AGI to accommodate the carry back and it will be used 100% in that year. The loss is about $120k.

In 2015 they were subject to AMT tax of $14k which they paid. Credit was claimed on their 2016 return for the AMT paid in 2015. The AMT on the amended 2020 return changed the AMT tax from $14k to $5k. What will be the interplay on the 2016 return after amending the 2015 return? Will it cause an amendment to 2016? Can or should I override the 2020 1040X AMT amount to match what was originally filed?

I have some research material to go over on my own. I'd appreciate any tips and advice. I can provide more information should the dialogue require.

Thank you in advance.

[terryats]

You can't use a 1040X to apply the NOL, and get a refund for 2015. You should use 1045, and apply all the loss to 2015. That way your client will receive a refund. As for all your other questions, maybe someone with more experience with NOL's will jump in. I've just carried back the NOL, and used 1045

[mhcpa1964]

Thanks Terry. I'll use the 1045 instead.

[Lion]

Check the instructions. I think there's a time limit on using Form 1045, after which you do need to use Form 1040-X. (Although, 1045 makes a nice worksheet for 1040X.)

[terryats]

From 1045 instructions "When To File Generally, you must file Form 1045 within 1 year after the end of the year in which an NOL, unused credit, net section 1256 contracts loss, or claim of right adjustment arose"