Time is Running Out to Take Advantage of the Special Refund Claims

Under the American Recovery and Reinvestment Act, signed in February, eligible small businesses that had a Net Operating Loss (NOL) in 2008, could carry that loss back five years. That means that the amount of this loss will offset any gains as far back as 2003, resulting in a special tax refund of taxes paid up to five years ago. Eligible calendar year corporations have until September 15th to claim this carry-back option.

Businesses should file an IRS Form 1139, Corporation Application for Tentative Refund, to accelerate a refund, which is typically issued within 45 days.

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