On November 6, 2009, President Obama signed into law the “Worker, Homeownership, and Business Assistance Act of 2009” which extends the longer loss carryback election originally only available for the 2008 tax year. The new legislation permits most taxpayers (not just small businesses) to carryback a 2009 tax year net operating loss 3, 4, or 5 years instead of the normal 2 years.
For example, if your business sustains a loss in 2009, that loss can be used to offset income as far back as the 2004 tax year. The 2004 and 2005 tax years, which normally would have been closed by the statute of limitations, are opened up as a result of the new legislation. Please contact us to find out if your business can take advantage of this opportunity.