This year hasn’t been a particularly good one, for many taxpayers. As soon as the new year dawns, consider getting your tax act together and, if you have a 2011 net operating loss, or certain unused credits available for carry back, get on the ball and file for a “quick” carry back refund claim.
This expedited procedure allows you to get your refund as quickly as possible — IRS must act on it within 90 days of filing!
Of course, you can choose to “waive” the carry back, and simply allow the loss to move forward. This decision will be a function of not only how much money you have on the table during the two year carry back period, but also should be based on your expectation of the future, and the marginal tax bracket in which you may find yourself then, which may be a higher bracket than in the past. And if you do so elect, you must attach to your 2011 return a statement to the effect that you are electing under IRC Section 172(b)(3) to relinquish the entire carry back period.
But if you want to carry back, get hold of Form 1045 and file it promptly, and in no case more than one year after the end of the tax year in which the loss was sustained, which would be December 31, 2012.