Time extension: tax payments by a corporation expecting a NOL carryback.

• Position: FTB NEWS - Net operating loss - Brief article

In September, the governor signed Assembly Bill 154, which, among other things, modified California conformity to the federal net operating loss (NOL) rules. California now incorporates the federal provisions that allow corporations expecting an NOL carryback to extend the time for payment of taxes for the preceding taxable year.

A corporation that expects a net operating loss in the 2016 taxable year can file form FTB 3593, Extension of Time for Payment of Taxes by a Corporation Expecting a Net Operating Loss Carryback, to extend the time for payment of tax for the 2015 taxable year. The extension includes the payment of a tax deficiency. The payment that can be postponed cannot exceed the expected overpayment from the carryback of the NOL.

Payments eligible for extension are payments of tax that are...