NOL carrybacks: Look at the big picture

Description

Abstract: To help manufacturers and other businesses improve their cash flow, the Coronavirus Aid, Relief and Economic Security (CARES) Act provides a temporary five-year carryback for net operating losses (NOLs). Under the act, businesses with NOLs in 2018, 2019 or 2020 may carry those losses back up to five years, offset them against taxable income in those years, and claim a refund. This short article reminds companies to look at their overall tax picture and consider how NOLs interact with two other tax areas: consolidated group considerations and the business interest deduction election.