Tax Treatment of Net Operating Losses (NOLs) of Corporations

Summary

This practice note discusses the tax treatment of net operating losses (NOLs) under I.R.C. Section 172, including the significant modifications to NOL tax treatment contained in the Tax Cuts and Jobs Act of 2017 (TCJA), Pub. L. No. 115-97, and the more recent Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Pub. L. No. 116-136. This practice note also discusses the limitations on how a corporation can carry forward its NOLs following a "change in ownership" in the corporation under I.R.C. Section 382.