Know your NOLs: Considerations for state taxpayers

How does the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) affect net operating losses (NOL) at a state level? When it comes to the five-year NOL carryback provision in the CARES Act, it’s important to understand the differences between, and limitations of, state and federal NOLs. Brian Sullivan, managing director at Deloitte Tax, lays out considerations for NOLs in states where future income is expected, procedures to document and support NOLs, and key differences between conforming at the state level and conforming with the amendments to IRC 163(j) from the CARES Act.