TERRY BIRRELL
CERTIFIED PUBLIC ACCOUNTANT
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Net Operating Losses Eligible Small Businesses - continued
The IRS stated that an “eligible small business” is a corporation or partnership whose average gross receipts for the three-taxable-year period ending with the taxable year of the net operating loss “NOL”) is not greater than $15 million. The IRS also stated that a sole proprietorship can qualify as an eligible small business provided that it would meet this test if it were a corporation.
The Revenue Procedure guidance includes:
- The time and manner for election of a 3, 4, or 5-year carryback period;
- The time and manner for electing to have the applicable 2008 net operating loss rules apply to the taxable year beginning in 2008 instead of the taxable year ending in 2008;
- How to make an election of a 3, 4, or 5-year carryback period where an election to forgo the net operating loss period has previously been filed;
- How a taxpayer who is a partner of an ESB that is a partnership, a shareholder of an ESB that is an S corporation , or a sole proprietor makes the election.
Filing deadline:
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Copyright 2009.Terry L. Birrell. All rights reserved.