Cash flow problems?
A new net operating loss (NOL) tax law provision could help.
The new net operating loss provisions could throw a lifeline to struggling businesses, providing them with a quick infusion of cash, said IRS Commissioner Doug Shulman. We want to make it as easy as possible for small businesses to take advantage of these key tax benefits.
With the economic downturn and the new law, the IRS expects record numbers of small businesses to be eligible for the refunds. The IRS is putting in special steps to ensure timely processing of these refunds to help small businesses during this difficult period.
Small businesses with large losses in 2008 may be able to benefit fully from those losses now, rather than waiting until claiming them on future tax returns.
The normal two-year carryback remains available if the small business does not elect the special carryback provision. If the loss exceeds the income for the carryback period, the taxpayer can continue to carry forward the remaining balance of the NOL for up to 20 years.
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