Has this Net Operation Loss become worthless??


R

rluckey77

Odd situation here, afraid I may have lost $16,000 worth of
a useable NOL credit. Can anyone offer any hope??

In 2002, I had a NOL of about $16,000, due mostly to
unexpected expenses in my small business. I usually prepare
my taxes myself, using Turbotax, but since I wasn't sure
what to do with the NOL, I decided to take them to H&R Block
and let them do it. I didn't get around to actually FILILNG
the tax until August 1 of 2005 (I had not filed for any
extension on it, by the way). Not knowing any better, I
assumed that the NOL would automatically be applied in some
way that I would get credit that I could use on future
returns.

Not long after I filed that tax in 2005, I was hit with a
number of personal issues that demanded my attention so
thoroughly that I completely forgot that I should have some
credit coming to me, in some form or other (I wasn't aware
of the carry-back rules for NOLs). NOW, 5+ years after the
initial NOL, I find out that although H&R Block completed
the Schedule A of the NOL form (where the *amount* of the
NOL is calculated), they did NOT fill out the Schedule B
part, where the NOL gets applied back to previous tax years.
I have started reading up on the situation, and have this
sinking feeling that the NOL is completely worthless at this
point because, as I understand it, the Schedule B part
should have been filled out and applied to earlier taxes
within 3 years of the due date of the 2002 taxes - ie, by
April 15th of 2006.

Does anyone have any ideas how I can rescue this NOL credit?
I'm immensely grateful for any input here. I asked one
person, and they said go ahead and try to file it now,
carrying back the NOL to the year it would have gone back to
if I had filed on time. Unfortunately, carrying it back that
far would make it apply to tax years that are too old to
amend and receive credit for, I believe. Crap. Any
suggestions???

If the NOL is unueseabIe at this point, I wonder if H&R
Block could be considered legally negligent, by neither
completing the Schedule B part of the Net Operation Loss
worksheet, nor telling me that I needed to do that to be
able to use the credit the NOL generated. Any ideas about
this???

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