5. An operating loss incurred by a corporation

a. Must be carried forward unless the company has had 2 loss years in a row.

b. Is carried back 2 years, then carried forward up to 20 years following the loss.

c. Is carried back 5 years and forward 3 years.

d. Cannot be used to reduce taxes in other years except with special permission from the IRS.

e. Can be carried back 3 years of forward 10 years whichever is more advantageous to the firm.