Several recent tax law changes have impacted how NOLs are treated. Pre-2018, NOLs could be carried back

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Several recent tax law changes have impacted how NOLs are treated. Pre-2018, NOLs could be carried back 2 years and carried forward 20 years. For tax years 2018, 2019, and 2020, the CARES Act allowed taxpayers to carry back an NOL for 5 years. Beginning in 2021, taxpayers can carry forward the NOL indefinitely. Compare the advantages and disadvantages of these sets of rules.

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The carry back provision of the prior rules meant that taxpaye...View the full answer

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