Net Operating Losses and the Statute of Limitations: Something New under the Sun?
DePaul University - College of Law
Oklahoma Law Review, Vol. 36, No. 2, 1983
The author begins by describing the general rules governing refund claims in order to provide necessary background information. He then explores the possibility that the intricacies of the Internal Revenue Code my allow a claim of refund, based on a "net operating loss" (NOL) to be carried back beyond the conventional statute of limitations period. After exploring the specific rules governing NOL refund claims, the author concludes that it appears that taxpayers with NOL's that have not been carried back and utilized within the special three-year statute of limitations period of IRC section 6511(d)(2)(A) may, nevertheless, carry back these NOL's by voluntarily paying tax on any barred underpayment in the carry back year. Then the taxpayer may file for refund of both the voluntarily paid tax and also claim a refund on the barred NOL under the two-year rule of IRC section 6511(a). Finally, the author identifies two possible problem areas and then finishes with a policy discussion on what the law should be.
Number of Pages in PDF File: 32
Keywords: tax refund, net operating loss, statute of limitations, 6511(d)(2)(A)Accepted Paper Series
Date posted: February 2, 2009
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