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Ghosts of Barbarians Limit New NOL Carrybacks

A specter of the old Barbarians at the Gate era emerges as companies hoping to take advantage of the net-operating-loss tax rules enacted last week may be limited by a 20-year-old law passed after the RJR Nabisco leveraged buyout.

November 16, 2009

On November 6, Congress passed, and President Obama signed, legislation extending the period to which net operating losses sustained in 2008 or 2009 may be carried. As a result, the NOLs incurred in either year (but not both) may be carried back to the fifth taxable year preceding the taxable year in which the NOL was suffered.¹ Traditionally, the NOLs may be carried back only two years. Read more...

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