Research Problem 2. Henry Hansen is a real estate developer. He was successful for many years. Three years ago, however, the real estate market crashed, and Henry reported losses for the two following tax years. The IRS disputed these losses and assessed tax deficiencies of $300,000 and $200,000 for the two years in question. In March of the current year, Henry offered to resolve all issues relating to those two years by paying the IRS

$250,000, or $125,000 for each year. In April of the current year, the Commissioner accepted Henry’s offer without discussion or negotiation. Henry now finds that he has an NOL for last year. If he carries the NOL back to the two years for which he reached a settlement with the IRS, the stipulated tax deficiency will be eliminated. Discuss whether Henry will be allowed to carry his NOL back to the two prior years for which he reached a settlement.