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Beware of hidden traps when filing for refunds related to NOL carrybacks 

Beware of hidden traps when filing for refunds related to NOL carrybacks

Most practitioners view filing Form 1045, as opposed to Form 1040X, as a quicker way to obtain a refund, but that choice could end up costing a taxpayer if there are problems with the returns in the carryback years.  Beware of a bill for interest and potentially penalties in excess of the refund requested.  Careful consideration should be given prior to filing an application for a tentative carryback adjustment.

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