November 10, 2009
On November 6, 2009, President Obama signed into law (Public Law 111-92) the Worker, Homeownership, Business Assistance Act (HR 3548), which included Net Operating Loss (NOL) tax relief. This temporary relief will allow struggling companies to get quick cash refunds from the IRS by using either their 2008 or 2009 losses to offset taxes paid in the past five years. This temporary tax relief is available to all size companies. There is a temporary limit in year 5 of the carryback: any refunds for taxes in the prior fifth year would be reduced by 50%. There is no limit in the refunds for taxes paid in the 4th, 3rd, 2nd or 1st year of carryback.
The National Association of Manufacturers (NAM) led a vigorous campaign with the help of many member companies to secure passage of this important tax provision. NAM also chaired the NOL Coalition to bring broad-based industry support to our efforts.
For more details about the New NOL tax law, including its impact on multinational companies, financial statements, consolidated returns, etc., see pages 3 and 4 of the Deloitte explanation of the new law.
No comments:
Post a Comment