Senate Bill 202, signed into law by Governor Perdue on August 7, 2009, updates our reference to the Internal Revenue Code to adopt the federal five-year net operating loss (NOL) carryback provision for 2008 NOLs that was enacted by the American Recovery and Reinvestment Act of 2009 (ARRA). Therefore, an individual is required to carry back the NOL to the same tax year(s) for federal and State individual income tax purposes.

The Department will now process amended State returns previously filed in which the three, four, or five-year carryback election was made for both federal and State purposes. As stated in our previous notice of May 18, 2009, we were holding these returns pending a decision by the General Assembly.

If you filed an amended return in which the entire 2008 NOL was carried back to tax years 2006 and 2007 for State purposes but the three, four, or five-year carryback election was made for federal purposes, additional amended returns must be filed to carry the NOL to the same tax year as that elected for federal purposes as well as revising the previously filed 2006 and 2007 amended State returns. Be sure to include a copy of the federal Form 1045 with Schedules A and B used for federal purposes.

Last modified on: 08/14/09 08:51:17 AM.