Net Operating Loss (NOL) carryback change offers tax planning opportunity to improve cash flow

On Nov. 6, 2009, President Obama signed The Worker, Homeownership and Business Assistance Act of 2009, which included provisions that extend the net operating loss (NOL) carryback period to five years for taxpayers incurring losses in tax years ending after Dec. 31, 2007 and beginning before Jan. 1, 2010

To learn more about how to maximize the NOL carryback benefits while avoiding potential risks, download our free white paper.

Capitalize on Opportunities, Avoid Pitfalls to Maximize Benefits From the Extended NOL Carryback Rules

Web seminar
Taking advantage of the extended NOL carryback provisions
View recording of Dec. 16, 2009 event

Current economic conditions require all companies to take every step possible to improve cash flow. The newly extended period for NOL carrybacks presents an opportunity to mitigate losses by capitalizing on potentially significant tax benefits, but this requires a careful analysis and planning.

To maximize potential NOL carryback benefits, companies should focus on certain key areas, including:

• Income recognition
• Expense recognition
• Inventory
• Capitalization policies and methods.

However, companies also must remember that the carryback election is irrevocable, and so they should also consider a variety of issues that can limit the value of the NOL carryback.

For specific guidance on making the NOL carryback period election, read our free bulletin, Service Explains How and When to Make Extended NOL Carryback Period Election.