1.26 Ark. Code R. 51-427
Current through Register Vol. 49, No. 10, October, 2024
The fact that the statutory period for assessment or refund of income taxes for the year in which the loss was sustained has expired does not prevent the making of adjustments necessary to correct the NOL deduction. The NOL may be increased or decreased by any such adjustment.
Example:
Corporation took a nondeductible expense in 1993. This was not detected until a return claiming a NOL was filed in 1997.
Tax Year 1993
Tax Year 1997
The 1993 tax year is outside the statute of limitations and cannot be assessed. However, the NOL for 1993 can be adjusted to the allowed or disallowed amount.
1.26 Ark. Code R. 51-427