Tax Loss Carry Back To Be Tweaked

In an effort to make tax relief from the economic stimulus legislation available to more American companies, and further stimulate construction and manufacturing industries, Senate Finance Chairman Max Baucus and Senator Olympia Snowe introduced a bill just before the Easter recess began which will tweak the five year net operating loss carry back provisions of the stimulus package. The original legislation limited the five year carry back to businesses with less than $15 million gross receipts annually. The Baucus/Snowe bill will remove that threshold, and permit businesses of any size which have not received TARP bailouts to use the five year carry back to amend past returns and get immediate cash tax refunds to infuse working capital into the business if there have been business losses in the current downturn.