Which of the following statements is true for a C corporation incurring a NOL for a tax year that begins in 2020?
A)It may carry the NOL back two years and forward 20 years.
B)It may not carry the NOL back to prior years but it may carry it forward 20 years.
C)It may not carry the NOL back to prior years but it can carry the loss forward indefinitely.
D)It may carry the loss back two years and carry the loss forward indefinitely.
E)None of the choices is correct.

Question

Quizplus · Accepted Answer

C corporations incurring a Net Operating Loss (NOL) for tax years beginning in 2020 can carry the loss forward indefinitely, but they cannot carry the loss back to prior years. This was a change introduced by the CARES Act in response to the COVID-19 pandemic, which temporarily allowed for carrybacks for losses in 2018, 2019, and 2020, but the general rule for 2020 and beyond is carryforward indefinitely without carrybacks.

Which of the Following Statements Is True for a C