[eaglesfan371]

In early 2017, I filed my 2016 tax return and was supposed to receive a refund back. The IRS notified me of a 1099 from Paypal in 2015 that had been received by them. I did not file in 2015 as I did not have significant income as a student. Thus, in 2017, I filed 2015 late and showed a ~$3200 loss in schedule C. I did not file any other documents besides a 1040 and schedule C along with receipts for COGS. This $3200 loss was sales minus direct costs of good sold, no other deductions.


My understanding is that I am able to carryforward a NOL up to 20 years. I had no schedule C income in previous years to carryback this loss at the time. In 2016 and 2017 returns I made no mention of this $3200 NOL.


In 2018, I had schedule C income of roughly $7000 along with W2 income of $55000. I am trying to deduct this $3200 loss from 2015 in my 2018 tax return since this is the first year I have schedule C income to offset. Problems that I am unable to find answer on are as followed:


1. Am I eligible to take this NOL carryforward? There is mention that I was supposed to waive some right of carryback within 6 months or lose this NOL.
2. Do I have to fill out a form 1045 if I take this carryforward? It appears that in publication 536, I only have to include this number as a negative amount in "other income" in the 1040 with a statement of explanation and computation.
3. Do I have to amend 2016 and 2017 tax returns to somehow show this NOL is still on record with me?

As someone with a bachelor's of accounting, it is disappointing I have been unable to solve this dilemma. After multiple calls to the above entities, no one has had a clear answer either. The IRS actually had the worst answer, lady gave me an explanation on capital gains, which is totally unrelated.

[DR225]

I doubt anyone here will know. Look for a reddit centered around taxes. If you don't have any luck there, post it on https://www.reddit.com/r/personalfinance/

Good luck.

[eaglesfan371]

I doubt anyone here will know. Look for a reddit centered around taxes. If you don't have any luck there, post it on https://www.reddit.com/r/personalfinance/

Good luck.

Thank you. Posted it to the personal finance reddit. Hopeful to find an answer.

[Booya711]

You seem to have more issues than The NY Times eagles....you ok man?

[RudyRuetigger]

milwaukeemike knows but he is VERY BUSY

[eaglesfan371]

You seem to have more issues than The NY Times eagles....you ok man?

Haha I'm doing fine. Several interviews lined up in the next week, paid off 10k of student debt last week and even if I cannot claim this loss, am looking at a small tax refund. Was worried I would owe a few hundred to a thousand. The business made money in 2015 but with help from my tax professor, who was also a tax lawyer, we were able to deduct enough to show a NOL. If I can't take the loss, it sucks but it's okay.

Only negative right now is I woke up with a bad cold today.

[milwaukee mike]

In early 2017, I filed my 2016 tax return and was supposed to receive a refund back. The IRS notified me of a 1099 from Paypal in 2015 that had been received by them. I did not file in 2015 as I did not have significant income as a student. Thus, in 2017, I filed 2015 late and showed a ~$3200 loss in schedule C. I did not file any other documents besides a 1040 and schedule C along with receipts for COGS. This $3200 loss was sales minus direct costs of good sold, no other deductions.


My understanding is that I am able to carryforward a NOL up to 20 years. I had no schedule C income in previous years to carryback this loss at the time. In 2016 and 2017 returns I made no mention of this $3200 NOL.


In 2018, I had schedule C income of roughly $7000 along with W2 income of $55000. I am trying to deduct this $3200 loss from 2015 in my 2018 tax return since this is the first year I have schedule C income to offset. Problems that I am unable to find answer on are as followed:


1. Am I eligible to take this NOL carryforward? There is mention that I was supposed to waive some right of carryback within 6 months or lose this NOL.
2. Do I have to fill out a form 1045 if I take this carryforward? It appears that in publication 536, I only have to include this number as a negative amount in "other income" in the 1040 with a statement of explanation and computation.
3. Do I have to amend 2016 and 2017 tax returns to somehow show this NOL is still on record with me?

As someone with a bachelor's of accounting, it is disappointing I have been unable to solve this dilemma. After multiple calls to the above entities, no one has had a clear answer either. The IRS actually had the worst answer, lady gave me an explanation on capital gains, which is totally unrelated.

1) you would've had to waive the carryback period... even if you had 0 income in 2013/2014... by not doing so, you lost the carryforward forever
2) see above
3) see above

https://www.irs.gov/pub/irs-prior/p536--2016.pdf

[eaglesfan371]

1) you would've had to waive the carryback period... even if you had 0 income in 2013/2014... by not doing so, you lost the carryforward forever
2) see above
3) see above

https://www.irs.gov/pub/irs-prior/p536--2016.pdf

That really sucks.

[Big Bear]

milwaukeemike knows but he is VERY BUSY

Yeah I would PM him

[b1slickguy]

Contact Joe Banister for all IRS related questions and concerns.

[Big Bear]

You seem to have more issues than The NY Times eagles....you ok man?

[Bostongambler]

Just in the last week alone he has asked for IRS help, Doctors help, dating help, plumbing help, poker players help, how to play the violin help, how to be an astronaut, how to be a bartender, law advice, gardening tips, tennis tips, help with the breast stroke, about how to join the circus, how to make cotton candy, salt water taffy, if anyone has ever been in a spelling bee, and how to cook tripe.

[Big Bear]

Just in the last week alone he has asked for IRS help, Doctors help, dating help, plumbing help, poker players help, how to play the violin help, how to be an astronaut, how to be a bartender, law advice, gardening tips, tennis tips, help with the breast stroke, about how to join the circus, how to make cotton candy, salt water taffy, if anyone has ever been in a spelling bee, and how to cook tripe.

Haha well the guy has a lot on his mind. The stories are interesting I think

[dlowilly]

It really is amazing how ignorant your average IRS employee is of the tax code

[eaglesfan371]

milwaukeemike knows but he is VERY BUSY

Mike told me I cannot claim it. A professor told me otherwise however I am not interested in risking an audit over a rough $500 tax break. Plus the state of Maryland gave me a $1000 grant so it all evens out. Printed out my tax forms, ready to mail tomorrow. Thanks guys.

@dlowilly AGREED. Out of all the people I spoke with, they were by far the worst answer. They started talking about capital losses which is completely different from schedule C income.

[pablo222]

Just in the last week alone he has asked for IRS help, Doctors help, dating help, plumbing help, poker players help, how to play the violin help, how to be an astronaut, how to be a bartender, law advice, gardening tips, tennis tips, help with the breast stroke, about how to join the circus, how to make cotton candy, salt water taffy, if anyone has ever been in a spelling bee, and how to cook tripe.

How do you cook tripe?

[Bostongambler]

How do you cook tripe?

In a pan.

[konck]

How do you cook tripe?

In someone elses kitchen it sucks