The federal tax system allows firms that have a tax loss in a year to apply the loss against past and future earnings. The process is referred to as loss carrybacks and carryforwards and permits the loss to be: carried back two years and forward as many as 20 years. b. carried forward for 20 years after having been carried back evenly over the past two years carried back or forward for as many as 20 years. spread evenly over the last two years and evenly over the next 20 years CHOR Save and submit to save and submit. Click Save All Answers to squeall