NOL carryback election

[Possi]

I am following a CPA's return from last year and there is a large NOL he is carrying forward.

He has prepared a statement each year electing to carry forward the loss.

Is this statement necessary every year???

If so, I will have to do the 8453 and attach it. I thought the statement was only necessary the first year and the following years fell in naturally.

Also, I did not have this information when I filed her 2006 return. She made so little money last year that it does not change her bottom line. If there is no change to her tax/refund, must I still file a 1040X to document the NOL balance?

Thanks,
~possi

[KJ Judd]

I am not an NOL expert. But my understanding was if you did not elect to carryforward each year, you are stuck carrying it back two years. So I make the election each year.

[outwest]

It's straight forward..

it's a one time election in the year the NOL is incurred. Thereafter, no further election statement is required unless an additional NOL is created in a subsequent year.

[Possi]

that's what I thought....

... but judging from my questions, what do I know?
*smile*
thanks!~