Corporate Taxes: Many Benefits And Few Costs To Reporting Net Operating Loss Carryover

Front Cover
DIANE Publishing, Aug 30, 2004 - Business & Economics - 50 pages
0 Reviews
 

What people are saying - Write a review

We haven't found any reviews in the usual places.

Common terms and phrases

Popular passages

Page 44 - Income Tax. 1989 Dollars in millions Note: Figures were obtained from weighted estimates based on samples. The weights were provided by IRS, and the estimates are subject to sampling error. Sampling error may vary widely from one estimate to another. Data limitations are discussed in SOI publication, 1989 Corporation Income Tax Returns. 'Section 263A costs are costs associated with items that must be capitalized under the uniform capitalization rules enacted by Congress in 1986.
Page 29 - APPENDIX I APPENDIX I Table I. 10: Individual Components of Costs of Goods Sold as a Percentage of Total Receipts. Corporations That Did Not Pay Income Tax. 1989 Dollars In millions Note: Figures were obtained from weighted estimates based on samples. The weights were provided by IRS, and the estimates are subject to sampling error. Sampling error may vary widely from one estimate to another. Data limitations are discussed in SOI publication, 1989 Corporation Income Tax Returns.
Page 6 - Losses documents with IRS Tax Forms and Publications and IRS Examination officials and with AICPA members. We obtained information on the cost and burdens of reporting NOL carryovers in discussions with IRS staff in the Tax Forms and Publications Division and AICPA members. We obtained information on the benefits of this reporting by reviewing TCMP returns and soi data and interviewing IRS, JCT, and Treasury officials. To analyze IRS...
Page 33 - Deductions for Corporations With Net Incomes and Net Losses Total deductions claimed by corporations with net incomes rose from $2.3 trillion in 1987 to $2.6 trillion (12 percent) in 1989. For corporations reporting net losses, deductions rose from $788 billion to $878 billion (11 percent) during this same period. Interest expense, the largest identifiable deduction item in 1989 aside from cost of sales and operations (see table II.5), rose $139.1 billion (36 percent) to $528.6 billion for corporations...
Page 2 - US-controlled corporations that paid no income tax, 24 percent claimed NOLDS that reduced their $6.5 billion taxable income to zero. Of the estimated 32,135 foreign-controlled corporations that paid no income tax, 18 percent claimed NOLDS that reduced their $347.3 million taxable income to zero.
Page 4 - MOLD was limited to the immediate preceding and succeeding year. In the 1950s, the carryback and carryover periods were changed to 3 and 5 years, respectively. In the 1970s, the carryover was extended to 7 years, and NOL usage rules were made more flexible. Most recently, the 1981 Economic Recovery Tax Act more than doubled the carryover period to 15 years.2 Studies of corporate NOLS and MOLDS are few. The most systematic study occurs through IRS' Taxpayer Compliance Measurement Program (TCMP), which...
Page 3 - MOLD equal to taxable income or did not report any NOLD because they had no taxable income. IRS' Research Division recommended that corporate tax returns be modified to report NOL carryover. We believe that the benefits of doing this outweigh the costs. Knowing the NOL carryover amount would (1) improve revenue estimates of proposed tax law changes, (2) improve voluntary compliance in reporting MOLDS, and (3) allow IRS to do limited compliance checks.
Page 44 - Specifically, manufacturing corporations used $12.1 billion (31 percent) of the $39.2 billion in NOLDS. Within manufacturing, primary metal industries claimed $2.6 billion, while petroleum and coal industries and machinery industries (except electrical) accounted for $1.7 billion and $1.1 billion of the total, respectively. (For information on industry groups ranked according to use of NOLDS in 1989, see table II.9.) Table...
Page 45 - Dollars in millions Net operating loss Industry division/major industry name deduction amount...
Page 26 - Estimated Net Operating Loss Carryover of Corporations by Industry Compared to Total Receipts, Tax Year 1989 Dollars in millions All corpo Number of returns rations Corporations with net operating loss carryover Number of returns Percentage of NOL carryover to total receipts Industry division Total receipts Total receipts NOL carryover Agriculture, forestry, and fishing 70,592 $59,876.1...

Bibliographic information