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NOL Revenue Procedure Issued under the WHBA Act of 2009

WASHINGTON — Most businesses may use losses incurred during the economic downturn to reduce income from prior tax years, under a revenue procedure issued [Friday] by the Internal Revenue Service.

The relief provided under the Worker, Homeownership, and Business Assistance Act of 2009 differs from similar relief issued earlier this year in that the previous relief was limited to small businesses.

The current relief is applicable to any taxpayer with business losses, except those that received payments under the Troubled Asset Relief Program. The relief also applies to a loss from operations of a life insurance company.

Taxpayers under the procedure may elect to carry back a net operating loss (NOL) for a period of three, four or five years, or a loss from operations for four or five years, to offset taxable income in those preceding taxable years. An NOL or loss from operations carried back five years may offset no more than 50 percent of a taxpayer’s taxable income in that fifth preceding year. This limitation does not apply to the fourth or third preceding year.

The procedure applies to taxpayers that incurred an NOL or a loss from operations for a taxable year ending after Dec. 31, 2007, and beginning before Jan. 1, 2010.

Revenue Procedure 2009-52 provides guidance under § 13 of the Worker, Homeownership, and Business Assistance Act of 2009, which allows taxpayers to elect a 3, 4, or 5-year net operating loss (NOL) carryback instead of a normally 2-year carryback. The election applies to an applicable NOL, which is an NOL for a taxable year ending after December 31, 2007, and beginning before January 1, 2010. The revenue procedure tells taxpayers the time and manner for making the election if the taxpayer (1) has not claimed a deduction for an applicable NOL; (2) previously claimed a deduction for an applicable NOL; or (3) previously filed an election to forgo the NOL carryback.

Revenue Procedure 2009-52 will be in IRB 2009-49, dated December 7, 2009.

Prologue to my Interview with Ric Franzi Author and Radio Show Host – But Take Note – This Part is all About Me.

By Stacie Clifford Kitts, CPA

A couple of weeks back you might remember that I bravely agreed to be a guest on Critical Mass the radio show on OCTalkRadio.net . I say bravely because if you know me well, you know that I am not a public person.

Yah yah – I am building an internet presence. And I regularly post to my blogs. But I do all that while sitting safely behind a desk in my quiet little office. But to put myself out there – you know to venture outside my “safe space” to be in a public arena – to be on “stage” – ‘tremble’ – not exactly something that I am comfortable doing.

You see, I was never the kid signing up for drama class, or participating on the debate team. I did not run for student government or even compete in sports. Although in the fifth grade, I was in the choir – I dabbled in gymnastics – and I made the cheerleading squad – I am not really sure what was going on there. I suppose the fifth grade was a year of anomalies for me.

But maybe in those days I was just too young to realize what appears to be the overriding theme, that whenever I stand before a crowd with people expecting me to say something intelligent or to be entertaining, let’s just say that I suffer from one of the most dramatic cases of stage fright that you will ever see. And regardless of how much I prepare or what techniques I use, the blood pressure will rise, the adrenalin will flow, the shaking will begin and while my face starts to glow a bright shade of red, I always wonder if this will be the moment when my ears will actually melt and slide off my head.

Now I don’t want to give the impression that I am a quivering mass of jittery anxiety, absolutely not, because frankly that would not be an accurate description of my personality. I am great in small groups, I have no trouble speaking my mind, and I can fight a good battle when needed. I am not a push over by any stretch.

But with all that said, I think my level of appreciation for people who are willing to step outside a typical comfort zone or who are willing to explore new avenues or concepts is somewhat enhanced. Frankly, I admire people who just put it out there – no doubt. And it is exactly that same willingness to put it out there that made me interested in contacting and interviewing Ric Franzi – author of Critical Mass The 10 Explosive Powers of CEO Peer Groups.

Ric and his partner have created a dynamic format to market their business and to highlight talented CEO’s and business owners here in Orange County. And I am excited to share with you in an upcoming post what I have learned about Ric, CEO Peer Groups, and Critical Mass the Radio Show. So please be sure to stay tuned.