If you’re not already taking advantage of the CARES Act NOL carryback rules, you might be missing out on a six-figure check from the IRS. Not a deduction. Not a credit. A check. Real money. And in the world of government contracts—where payments are slow but your expenses are now—cash in hand can make or break your next move.
At Icarus Fund, we specialize in helping businesses like yours unlock trapped cash through NOL carrybacks. These are not gimmicks. These are legal IRS strategies that became even more powerful when the CARES Act revived some of the most aggressive tax relief rules in recent memory.
Let’s break it down, keep it real, and help you claim the money you’ve already earned.
The Basics: What’s an NOL and Why Does It Matter?
If your business expenses exceeded income in any year, you’ve got what’s called a Net Operating Loss (NOL). You probably saw that on your tax return and thought, “Well, that sucks. Better luck next year.”
But here’s the truth: an NOL is not a loss. It’s a hidden asset.
Thanks to the CARES Act NOL carryback rules, that “loss” can now be turned into cash—right now. Instead of waiting to offset future income, you can apply that loss to profitable years in the past and trigger an IRS refund check. If you had profitable years from 2015 to 2019, those are your gold mines.
How the CARES Act Changed the Game
Before the CARES Act, tax law changes under the 2017 Tax Cuts and Jobs Act basically eliminated the ability to carry losses back. That was a punch in the gut for many businesses. But when the pandemic hit, Congress flipped the switch and turned the rules back on.
The 5-Year Carryback Window
Under CARES Act NOL carryback rules, losses from 2018, 2019, and 2020 can be carried back up to five years. That means if you took a big loss during COVID, you can apply that loss to a pre-pandemic year when your business was thriving—and get a full or partial refund of the taxes you paid.
And that refund? It’s not some credit you use later. It’s cash, typically delivered by check or direct deposit.
Why This Matters for Government Contractors
Let’s say you just won a big federal contract. Congratulations! But here’s the kicker: the government doesn’t prepay. You’re fronting payroll, equipment, materials, compliance—before you ever see a dime. Loans are expensive, factoring is brutal, and cash flow is tight.
That’s why CARES Act NOL carryback rules are your secret weapon. They can inject tens or even hundreds of thousands of dollars into your business without debt and without giving up equity.
The Refund That Saved a Contract
We’ll give you a real example. One of our clients at Icarus Fund—let’s call her Lisa—runs an HVAC company that landed a GSA contract in late 2023. She had just taken a heavy loss in 2020, during the shutdowns, but had killer profits back in 2017 and 2018.
We carried that 2020 loss back five years using Form 1045. Lisa got a refund check for $146,000 in under 90 days. That cash paid for labor, equipment, and bonding requirements. Without that refund, she would’ve had to turn down the job or go into expensive debt.
That’s the difference. That’s why these rules matter.
How to Use CARES Act NOL Carryback Rules Effectively
Step 1: Identify Your Loss Years
Look at your tax returns from 2018, 2019, and 2020. Did you have a loss? If yes, good—this is the starting point. You can’t claim a carryback without an NOL.
Step 2: Look for Profitable Years Behind That Loss
Go back up to five years prior. If you paid taxes in those years, we can offset those profits with the recent loss and apply for a refund.
Let’s say you had a $250,000 loss in 2020 and made $300,000 in 2017. If you paid $70,000 in taxes in 2017, the NOL could potentially wipe out that profit—and send that $70,000 back to you.
Step 3: File Fast Using the Right Form
Use IRS Form 1045 (for individuals or sole props) or Form 1139 (for corporations). These forms are designed for quick processing. We’ve seen refunds hit client accounts in as little as six weeks.
At Icarus Fund, we handle all of this for you. You send us your prior returns—we’ll tell you what’s eligible, file the forms, and get that check on the way.
Don’t Make These Costly Mistakes
Even with these powerful rules in place, a lot of businesses still mess it up:
Missing the deadline. You typically have 3 years after the loss year to file the carryback. Once it’s gone, it’s gone.
Using the wrong forms. Form 1040X or 1120X is slower. Use 1045/1139 to fast-track.
Not including all deductions. A bigger loss = a bigger refund. Don’t skip depreciation, interest, bad debts, etc.
Doing nothing. The worst mistake is leaving this money on the table.
Why Icarus Fund Makes This Easy
We’re not just tax geeks—we’re strategic refund hunters. At Icarus Fund, we specialize in maximizing NOL carryback refunds for companies that work with the federal government.
We understand the funding gaps contractors face. We know how slow payments can drag your growth. That’s why we focus on liquid capital strategies—and CARES Act NOL carryback rules are one of the best tools we’ve ever had.
We go through your tax history with a fine-tooth comb, identify every refund opportunity, and handle the IRS paperwork from start to finish. You stay focused on your contract. We get your money back.
The Clock Is Ticking on This Opportunity
The CARES Act NOL carryback rules created a once-in-a-generation chance to reclaim tax dollars you already paid. But these rules won’t last forever. If you had losses in 2018–2020 and profitable years before that, the time to act is now.
This isn’t theory. This is cash that could fund your project, cover payroll, buy equipment, or pay off debt—without taking on more risk.
Call to Action
💼 Want to know how much the IRS might owe you?
📆 Schedule a free NOL refund review with Icarus Fund today.
We’ll tell you what you’re eligible for, what forms to file, and how fast you can get your refund.
No fluff. Just real money, in your hands, fast.
👉 Let’s turn your past loss into today’s capital.
