The IRS announced today that qualifying small businesses may now carry back net operating losses (NOLs) for five years, instead of the limited two year period normally allowed. This will allow some small businesses to receive refunds for prior years by allowing them to spread out their unused NOLs over a longer period of time. The IRS stated that with the economic downturn and the new law, the IRS expects record numbers of small businesses to be eligible for the refunds. The IRS is putting in special steps to ensure timely processing of these refunds to help small businesses during this difficult period. The business may apply for an accelerated refund, which will allow the IRS to process the refund quickly. However, these refunds will be subject to later review by the IRS. To qualify for the new five-year carryback provision, a small business must have no greater than an average of $15 million in gross receipts over a three-year period ending with the tax year of the NOL. Businesses with more than $15 million in gross receipts still qualify to carry back their 2008 NOL for two years. For more information see http://www.irs.gov/newsroom/article/0,,id=205329,00.html