Infographic titled 'Net Operating Loss (NOL) Pitfalls' showing 6 common mistakes: 1. Incorrect Calculation, 2. Wrong Carryback/Carryforward, 3. Improper Amended Returns, 4. Entity Type Confusion, 5. Related Party Issues, 6. Audit/Collection Problems. Each pitfall links to relevant IRS publications (e.g., Pub 536, Form 1040-X, Pub 542, Pub 544). Key takeaways emphasize maintaining detailed records, consulting a Net Operating Loss CPA, and understanding IRS rules for IRS tax resolution.

Understanding a Complex Net Operating Loss Case

It’s common for family members to help when a parent or spouse faces IRS problems. But when an old net operating loss and related-party transactions are involved, “just filing an amended return” isn’t that simple. Here’s how Ed Parsons, CPA, unpacks these complex cases and builds a defensible path forward.

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