If you’re looking to claim NOL carryback tax credits, you’re sitting on a pile of cash—and most business owners don’t even know it. That’s right. You can turn past losses into real refunds, fast. If you had a rough year, the IRS might just owe you a big check. But here’s the problem: most small business owners never take advantage of it. Either their CPA doesn’t know the play, or they think it’s “too complicated.” That’s nonsense.
Let’s break it down and get you paid.
What Is a Net Operating Loss (NOL), Really?
When your business expenses outpace your income, that’s a Net Operating Loss (NOL). Normally, you’d just roll that forward and hope to apply it against future profits. But here’s the trick: the carryback provision lets you go back and apply that loss to past tax years where you paid income tax—and get that money back now.
This means instant liquidity. It means real cash from the IRS.
How to Claim NOL Carryback Tax Credits in Simple Terms
Step one: Know your numbers. You can’t claim NOL carryback tax credits unless you know exactly how much you lost and in what year. Most small businesses forget this part. They assume their software “handles it.” Bad idea. Sit down, pull your P&L, and calculate that NOL.
Step two: Pick the right years. You can typically carry losses back up to 5 years. So if you got crushed in 2023, you might be able to apply that loss against profitable years like 2018 or 2019 and trigger a refund from the IRS.
Step three: File Form 1045 (if you’re a sole prop) or Form 1139 (if you’re incorporated). These forms are your golden ticket. You’re basically saying: “Hey IRS, remember all that tax I paid back in the good years? I want some of that back—because I just had a rough one.”
Our Personal Story (Yes, This Is Real)
A few years ago, we had a client who owned a construction subcontracting business. COVID hit him hard—sales cut in half, crew costs ballooned, contracts paused. By the time 2020 ended, he had a $350,000 net loss. His CPA said “just carry it forward.”
We said, “No. Let’s go get your money back.”
We dug up his 2017 and 2018 returns. Boom—$72,000 in overpaid taxes. We filed the carryback, and he had a refund check in hand in 6 weeks. That money let him rehire three crew members and lock in a new GSA contract by March.
This is the real deal.
The Clock Is Ticking—Don’t Wait
Here’s the catch: there are strict timelines to claim NOL carryback tax credits. You’ve got 12 months from the end of the year of the loss to file your refund claim. Miss that window? You just kissed your refund goodbye.
This is why most businesses miss out—they’re too slow.
You’ve got to move fast, gather your records, and file your claim.
Who Qualifies to Claim NOL Carryback Tax Credits?
Small businesses with a net operating loss in the last tax year
Government contractors, especially subs who got squeezed mid-project
Startups that scaled fast, then hit a wall
Service businesses that got crushed by inflation or demand shifts
If you’ve been in the red, and you paid taxes in the past 5 years, this is your play.
Pro Tips for Filing Like a Pro
Get a breakdown by year: The IRS wants specifics. Don’t just say “I lost $100K.” Show how it happened and when.
Attach supporting docs: Tax returns from prior years, a profit and loss statement, and any relevant business certifications.
File electronically if possible: Speed matters. Paper delays can stretch into months.
Work with someone who knows how to move: This is not a job for a part-time tax preparer.
Common Mistakes That Kill Refunds
1. Waiting Too Long
Like we said—12 months and you’re done. Don’t procrastinate.
2. Applying the Wrong Loss Year
Make sure your math checks out. The IRS isn’t going to do the heavy lifting for you. If you say “2022,” but the loss occurred in 2023, your claim will get kicked back.
3. Not Using the Correct Form
Yes, it’s tax stuff, but forms matter. Use the wrong one, and you’ll be chasing that refund forever.
Let’s Talk Results
A government subcontractor we worked with had a $420K loss from job delays and supply chain issues. He paid six figures in taxes over the last 5 years. We helped him claim NOL carryback tax credits and he walked away with $58,000 in refunds.
That’s a six-figure problem solved with one strategy.
Claim NOL Carryback Tax Credits — Now
Don’t let the IRS keep money that’s rightfully yours. You’ve done the hard part—survived a brutal year, kept the doors open, fought through uncertainty. Now let’s turn that into cash.
You can sit on your losses… or use them.
You can “wait for better days”… or file and get your refund this quarter.
The smart move? Take what you already earned—your overpaid taxes—and put them to work for your business now.
🚀Ready to Claim Your NOL Carryback Tax Credits?
Book a free consultation with our team at Icarus Fund. We’ll help you prep your forms, review your past filings, and file your carryback claim the right way—so you get the refund you’ve already earned.
Let’s get you paid. Click here to schedule your free NOL consultation.
