Last-minute PSA: you're about to lose your 2018 or 2019 NOL!

[Michael Plaks]

If you do not know what NOL (Net Operating Loss) is, this alert is not for you probably. :)

If you carried your 2018 NOL to 2019 or carried your 2019 NOL to 2020 - you only have UNTIL OCTOBER 15th, 2021 to reaffirm this choice. It's done by attaching an explicit statement to your 2020 tax return, referring to Rev Proc 2020-24.

If you already filed your 2020 return, then file a 1040-X amended return and attach this statement, also before Oct 15th.

After Oct 15th, the only option is to carry it 5 years back. It is MANDATORY, not optional. Your carryforward will become invalid.