Walter & Shuffain, P.C.
Certified Public Accountants & Business Advisors
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President Obama signed into law the Worker, Homeownership and Business Assistance Act on November 6, 2009. This act extends certain portions of the original "stimulus" package from the American Recovery and Reinvestment Act of 2009 and provides all businesses with an expanded net operating loss (NOL) carryback.
The original stimulus package permitted small businesses (average gross receipts of $15 million or less) to elect to carry back 2008 NOLs for three, four or five years. Under the newly passed law, ALL businesses may elect to carry back an applicable NOL for three, four or five years. An applicable NOL is a loss for a tax year ending December 31, 2007 and beginning before January 1, 2010.
A taxpayer may choose to take the extended NOL treatment with regard to only one of the two tax years - 2008 or 2009. However, if a small business chose to use the NOL carryback on its 2008 NOL under the American Recovery and Reinvestment Act of 2009, it still is eligible to make this election under the Worker, Homeownership and Business Assistance Act for its 2009 NOLs.
An irrevocable election under the Worker, Homeownership and Business Assistance Act must be made by the due date (including extensions) for the tax return filed for the taxpayer's last taxable year beginning in 2009.
If you would like more detailed information, please do not hesitate to contact us.