Can I Carry Back A 2025 Nol Carryforward. Generally, nols can no longer be carried back but are allowed to be carried forward indefinitely (sec. If the taxpayer forgets to make the election, then the irs, in an audit situation, can carry back the nols to the appropriate years to determine whether the carryforward is correct.

If the taxpayer forgets to make the election, then the irs, in an audit situation, can carry back the nols to the appropriate years to determine whether the carryforward is correct. Businesses thus are taxed on their average profitability, making the tax code more neutral.