IDR Releases Tax Guidance: NOLs Incurred During COVID-19 Pandemic
President Donald Trump's pandemic disaster declaration affects all net operating losses incurred in Iowa after January 20, 2020. The Department has released the following tax guidance to explain this update:
- 3-Year Carryback for Iowa NOLs Incurred by Individuals During the COVID-19 Pandemic
This requires any net operating loss incurred by an individual engaged in a small business or farming business in Iowa after January 20, 2020 to be carried back 3 years, unless an election was made to waive the carryback period or to use the 5-year carryback period for farmers.
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