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NOL

SOL tolling due to disability doesn’t apply to 2008-2009 extended NOL carryback election

SOL tolling due to disability doesn’t apply to 2008-2009 extended NOL carryback election

McAllister, (Ct Fed Cl 2/22/2016) 117 AFTR 2d ¶ 2016-443 The Court of Federal Claims has held that the provision under which the statute of limitations (SOL) for filing a refund claim is tolled during a period of the taxpayer’s disability, doesn’t apply to extend the period for making the election that was available in […]

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No extended NOL carryback for successor of TARP recipient

No extended NOL carryback for successor of TARP recipient

Chief Counsel Advice 201605018 In Chief Counsel Advice (CCA), IRS concluded that a taxpayer who acquired a Troubled Asset Relief Program (TARP) recipient in a statutory merger was prevented by the Code Sec. 381 attribute carryover rules from electing the extended net operating loss (NOL) carryback in Code Sec. 172(b)(1)(H). Background—net operating loss carrybacks. Code Sec. […]

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Refund allowed due to election to deduct foreign income taxes freeing up NOL carryback

Refund allowed due to election to deduct foreign income taxes freeing up NOL carryback

Chief Counsel Advice 20154010, Chief Counsel Advice 20154011 In Chief Counsel Advice (CCA), IRS has concluded that a taxpayer’s claim for refund was timely because the taxpayer made a Code Sec. 901 election to deduct foreign taxes paid within the 10-year period under Code Sec. 6511(d)(3)(A), and the taxpayer filed its claim for refund based […]

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Tax Court – Consolidated group’s NOL, not individual members’ NOLs, reduced by excluded COD income

Tax Court – Consolidated group’s NOL, not individual members’ NOLs, reduced by excluded COD income

Marvel Entertainment, LLC, (07/21/2015) 145 TC No. 21 The Tax Court has held that, where members of a consolidated group have cancellation of debt (COD) income that is excluded under Code Sec. 108, and the attribute that is reduced as a result of that exclusion is net operating loss (NOL), it is the consolidated group’s […]

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Financial disability tolling provision doesn’t suspend refund claim period for NOL carryback

Financial disability tolling provision doesn’t suspend refund claim period for NOL carryback

Chief Counsel Advice 201515019 In Chief Counsel Advice (CCA), IRS has concluded that Code Sec. 6511(h), which suspends certain limitations periods where the taxpayer is “financially disabled,” does not extend the special 3-year limitations period for net operating loss (NOL) or capital loss carrybacks under Code Sec. 6511(d)(2). Rather, Code Sec. 6511(h), by its terms, […]

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Bankruptcy after product liability didn’t justify longer carryback for worthless stock

Bankruptcy after product liability didn’t justify longer carryback for worthless stock

Chief Counsel Advice 201442054 In Chief Counsel Advice (CCA), IRS has concluded that the worthless stock deductions claimed by a taxpayer in respect to stock of a subsidiary that was cancelled as part of a bankruptcy reorganization, did not qualify as product liability deductions and thus were ineligible for the 10-year carryback allowable for specified […]

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3-to-5-year carryback of 2008/2009 NOLs doesn’t change order for utilizing AMT NOLs

3-to-5-year carryback of 2008/2009 NOLs doesn’t change order for utilizing AMT NOLs

Legal Advice Issued by Field Attorneys 20144201F In Legal Advice Issued by Field Attorneys (LAFA), IRS has concluded that alternative tax net operating losses (ATNOLs) that were incurred in 2008 or 2009, and that qualify for the special 3-to-5-year carryback under Code Sec. 172(b)(1)(H), cannot be utilized by taxpayers after ATNOLs that are incurred in […]

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Final regs modify application of Code Sec. 382 segregation rules to small shareholders

Final regs modify application of Code Sec. 382 segregation rules to small shareholders

IRS has issued final regs, T.D. 9638, 10/21/2013; Reg. § 1.382-3, on the application of the segregation rules to public groups of shareholders in determining owner shifts and ownership changes for purposes of Code Sec. 382’s loss trafficking rules. The final regs, which affect corporations, generally adopt the proposed regs issued late in 2011, with […]

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IRS explains on interplay of pre-2010 5-year NOL carryback and 2004 CFC repatriation holiday

IRS explains on interplay of pre-2010 5-year NOL carryback and 2004 CFC repatriation holiday

In Legal Advice Issued by Associate Chief Counsel 2013-004, the IRS has provided guidance on the interplay between a limitation on net operating loss (NOL) carrybacks to the fifth previous year under a rule that applied to certain pre-2010 years and a limitation on the amount of the dividends received deduction under the 2004 earnings […]

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No loss deduction for costs of stock offering that wasn’t actually abandoned

No loss deduction for costs of stock offering that wasn’t actually abandoned

In heavily redacted Legal Advice Issued by Field Attorneys (LAFA), 2013-3101F, IRS has determined that a taxpayer wasn’t entitled to an abandonment loss deduction for various costs of a proposed stock offering. Although the reorganization plan that included the stock offering was terminated, the facts showed that the stock offering wasn’t actually abandoned because the […]

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Delays by IRS in the processing of net operating loss (NOL) cases has resulted in the agency making millions of dollars annually in unnecessary interest payments to taxpayers

Delays by IRS in the processing of net operating loss (NOL) cases has resulted in the agency making millions of dollars annually in unnecessary interest payments to taxpayers

TIGTA’s report entitled “Delays in processing net operating (NOL) loss cases resulted in millions of dollars in unnecessary interest payments,” is very topical for a few reasons. For one thing, I have clients who have pending refund claims, and have been delayed in receiving their refunds.  They are actually quite surprised to learn that the […]

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Update on Solyndra bankruptcy: IRS appeals denial of its objection to plan saying it allows the company to avoid paying taxes

Update on Solyndra bankruptcy:  IRS appeals denial of its objection to plan saying it allows the company to avoid paying taxes

Editor’s Note:  Update to the article/blog posted today entitled “IRS objects to Chapter 11 bankruptcy plan based on alleged tax avoidance purpose,” as the IRS filed its Notice of Appeal.   The basic argument is that a company with no assets or any business activity is nothing more than a shell and thus should not be […]

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Mitigation provisions didn’t allow a taxpayer an NOL discovered on audit Chief Counsel Advice 201208027

Mitigation provisions didn’t allow a taxpayer an NOL discovered on audit Chief Counsel Advice 201208027

Mitigation provisions didn’t allow a taxpayer an NOL discovered on audit Chief Counsel Advice 201208027 In Chief Counsel Advice (CCA), IRS has concluded that the mitigation provisions under Code Sec. 1311 through Code Sec. 1314 didn’t allow a barred refund after an audit resulted in an increased net operating loss (NOL) that was properly carried […]

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Meet Paul Raymond

Meet Paul Raymond

Mr. Raymond is a sought after speaker in tax controversy law by many attorney, accountant, and business groups and at the request of the Internal Revenue Service, has presented programs at the IRS Nationwide Tax Forum, attended by tax professionals throughout the United States.

Additionally, he continues to be an active member in the Section of Taxation, American Bar Association, where he was the Past Chair of the Employment Taxes Committee.

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