Keep Corporation joined an affiliated group by merger in 2016. The group generated a consolidated 2016 NOL, and Keep's share of the loss was $50,000. Lacking an election by the parent to the contrary, Keep can carry the loss back to its separate 2014 return, and the parent can claim a tax refund.

Question

Quizplus · Accepted Answer

The statement is false. A consolidated NOL cannot be carried back to a separate return year. It can only be carried back or forward to other consolidated return years in the same affiliated group.

Keep Corporation Joined an Affiliated Group by Merger in 2016