IRS – Listen Up Folks!!

The Internal Revenue Service has provided guidance to businesses on how they can use losses in 2008 and 2009 to offset income earned as long as five years ago. Businesses normally can carry back net operating losses for only two years. The economic-stimulus bill expanded that period to five years for small businesses, and lawmakers recently passed legislation extending the benefit to all businesses.

“This presents a significant opportunity for taxpayers and can result in a cash refund for qualifying companies that had taxable income in previous years.” Says Paul Manning, a principal in KPMG’s Washington national tax practice.

For information, go to www.irs.gov.