We help our clients in this complex corner of the State Income / Franchise tax world by performing State NOL reviews. Our team of experienced professionals can help you by determining opportunities and risk related to your current NOL position. We then file for refunds, schedule the expiration of the state NOLs for planning and reporting, and provide guidance as it relates to increasing or decreasing the tax value of the NOL for financial reporting.
These projects are sometimes done, and can be efficiently completed, in conjunction with a State RAR Filing Project.
During our reviews, we use our internally developed NOL Web App to accumulate client data and to perform calculations and evaluate results. At the end of our review, clients may wish to continue to use the software for ongoing compliance and accounting. In that case, we can make the Web App available to them as a stand-alone software service.
The Web App assists clients in tracking State NOLs on a jurisdiction basis for:
Each state has their own unique rules related to net operating losses which have been evaluated and incorporated into the Web App. Differences include:
Even states that follow federal IRC Sec. 172 may have different deduction and carryforward amounts resulting from the state’s unique limitations or combination rules.
The Web App assists clients in tracking State NOLs in accordance with all of these rules.
The Web App:
– Separate Company Reports – summarized by year or detailed by event,
– Multi-Entity/Multistate Reports – which can be used as support for the tax footnote and provide a schedule of state NOL expirations,
– Matrix Report – This report shows Losses across the top axis, income on the right hand axis with utilization and expiration amounts shown in the center section.
– If filing on a separate basis, this report will be for the separate company,
– If a combined return where losses are generated and used by the combined group (similar to Federal), then on a combined group basis, and
– If the combined return limits usage to each individual entity in the group, it will be a separate entity report
We regularly provide demonstrations of the Web App and are ready to discuss how a State NOL review might benefit your company.