Carry That Weight! Tax Loss and Tax Credit Carryforwards

In allowing a taxpayer to carryforward and carryback its net operating losses, the IRC recognizes the variability in corporate profits and the many reasons for this variability, especially for newly formed and restructured businesses. The IRC does not totally whipsaw taxpayers who have taxable years that produce losses that follow or precede profitable years. Instead, it allows taxpayers to offset their profits for tax purposes, at least to some extent, in one taxable year with the losses incurred in other taxable years.

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Related Content 

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  • Business Entities. IRS announces that under I.R.C. § 613A(c)(6)(C), the applicable percentage for purposes of determining percentage depletion on marginal properties for calendar year 2022 is 15%. Notice 2022-24, I.R.B. 2022-21.
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