New Form 172 for NOLs

The IRS has created Form 172, Net Operating Losses (NOLs), effective for the 2024 tax year.

While none of the rules for net operating losses (NOLs) have changed, taxpayers with NOLs must attach the new form to their returns both for the tax year in which an NOL originates and the later tax years to which the NOL is carried forward.

The IRS delay in finalizing the form has caused the form to remain unavailable in certain tax software, and practitioners must wait until the form is available to e-file returns for clients with NOLs.