Taxpayers make the election by attaching a statement to the return. The statement should indicate that they are electing the number of years that the loss will be carried back. The election is irrevocable. Therefore once made, it can not be reversed.
If the required statement is not properly attached to the return, a late election may be applied for under Reg.301.9100-2(b).
If a small business previously elected to waive the carryback of 2008 NOL but now wants to elect this special carryback, the small business may revoke its previous election to waive the carryback. The election revocation must be made on or before April 17, 2009.
Revenue Procedure 2009-19
Questions and Answers for ARRA – Section 1211 5-year Net Operating Loss Carryback Election for Small Businesses