Bees and others

[DTS]

I did a search on the board for NOLs and ran across this one that is similar to my situation, but wanted to clarify I'm OK since this something I've not had to deal with in the past:

http://www.thetaxbook.com/forums/showthread.php?t=6354&highlight=election

I e-filed my client on time, but did not file an extension knowing I would be OK, time-wise. When I filed the return, it shows I did make the election to forego the carryback. Today, I came into additional information that will make it necessary for me to amend the '07, which will add to the NOL.

A couple of questions:

1) It's still within the timeframe to file the amended showing the new NOL with the higher total? and..
2) Does a new election to forego the carryback have to be filed with the amended or is the original election still in place?

Thank you for the clarification on this. I appreciate it.

Dennis

[Bees Knees]

The link you found deals with making the election to forego the carryback of an NOL on an amended return. You already made the election to forego the carryback on the original return, so that cited statement in IRS Pub 536 does not apply.

Your question deals with whether or not you need to make a second election to forego the carryback of an NOL if you file an amended return that adds to the original NOL. That issue is not addressed in IRS Pub 536.

An amended return simply changes a specific item on the original return. It does not replace the original return. Anything you do on the original return stays that way, unless you change that specific item on the amended return.

Keep in mind the election itself does not state a specific dollar amount of the NOL that is being carried forward. It simply says you elect not to carry back the NOL. There is no provision that allows you to carry some of the NOL back and the rest forward. You either carry it all back and then forward, or carry it all forward without first carrying it back. This is different than a Section 179 election where you need to elect a specific dollar amount.

Since you made the election on the original return not to carry the NOL back, and you are not specifically changing that election on the amended return, the election does not change. It still applies. To be safe, however, you may want to re-attach the election. I’m not saying it is required, but it doesn’t hurt to do it, just to be on the safe side.

[DTS]

Bees

Thank you for clarifying this for me. I will do as you suggested.

Dennis