If you’ve never heard of the IRS rule for cashing out NOL losses, you’re not alone—but let me tell you, it’s one of the most underused tools to get cash back into your business fast. Especially if you’ve won a government contract and need to front labor, materials, or bonding, this could be a complete game-changer. And if your tax guy hasn’t brought it up? Yeah, that’s a problem.
Why Nobody Talks About This Rule (But You Need To)
Most business owners think that when they have a loss, it’s just a number on paper. They write it off, move on, and hope next year is better. But what they don’t realize is that the IRS rule for cashing out NOL losses lets you reach into the past, apply your current loss to a prior year where you made money, and get a refund on taxes you already paid.
Yeah—money back from the IRS. Not a credit. Not a deduction. A check.
What’s a Net Operating Loss (NOL), and Why Should You Care?
An NOL—Net Operating Loss—just means your business expenses exceeded income in a given year. Maybe it was COVID. Maybe a big project tanked your numbers. Or maybe you had heavy upfront investment to secure a contract. Either way, you had a down year. But here’s where it gets interesting.
Under the IRS rule for cashing out NOL losses, you don’t have to just wait around and hope for better profits next year. You can take that loss and carry it back—usually 2 to 5 years, depending on the tax year—and use it to recover taxes you already paid in those profitable years.
How Icarus Fund Helped a Contractor Cash Out $173K
Let me give it to you straight. We had a government subcontractor in the Midwest who had a brutal year in 2022. Overruns, late payments from the agency, rising material costs. The books looked ugly.
But back in 2019 and 2020? They had solid profits. Paid a ton in taxes.
Their tax expert told them to carry the NOL forward. Not wrong—but definitely not strategic.
We stepped in, ran a quick NOL analysis, and used the IRS rule for cashing out NOL losses to file IRS Form 1045. Within 63 days, they had a $173,000 refund check in hand.
That money helped them cover payroll, buy new equipment, and keep performing on the contract they already won.
How This Rule Helps Government Contractors Stay Liquid
Winning a contract is great—but let’s be real. Government contracts are capital-heavy and slow-paying. Mobilization, payroll, materials, bonding—those costs stack up fast.
Traditional financing? Not always friendly. Banks are risk-averse. Interest rates are up. And unless you’ve got perfect books, you’re probably not getting what you need.
But if you’re sitting on unused NOLs and past tax payments, the IRS rule for cashing out NOL losses turns those losses into working capital. That’s your own money—no debt, no dilution, no waiting.
Why Most Businesses Miss Out
Here’s why most people never tap into this:
1. They Don’t Know It Exists
Seriously—ask around. This rule is buried in IRS language, and most tax advisors don’t bring it up unless you ask.
2. They Think It’s Complicated
It’s not rocket science. If you know what forms to use and how to calculate it properly, the IRS rule for cashing out NOL losses is straightforward.
3. They Wait Too Long
There’s a window of opportunity to file. Miss it, and the refund is gone. You’d be shocked how many refunds expire untouched.
Form 1045—Your Fast Lane to a Refund
There are two main paths to get your NOL refund:
Form 1045: This is the fast track—you get your refund in 45–90 days.
Amended Return (1120X or 1040X): Slower and more paperwork-heavy.
At Icarus Fund, we don’t just find the opportunity—we file it for you, fast. Our entire process is designed to get cash in your hands while you’re still in the window to make it count.
Think You Qualify? Here’s a Quick Test
Did you have a business loss in 2020, 2021, or 2022?
Did you pay income taxes in the five years before that?
Are you fulfilling or ramping up for a government contract?
Are you tight on cash or burning through your line of credit?
If you said yes to even one, you might be able to claim a refund under the IRS rule for cashing out NOL losses. And you should move now, because the clock is ticking.
What Icarus Fund Does Differently
We don’t do generic tax filing. We specialize in turning losses into liquidity, especially for contractors in the federal and state procurement space.
When you partner with Icarus Fund:
You get a full NOL review—fast.
We file the right forms, on time, and maximize your refund.
We work your refund strategy into your broader financing game plan—whether it’s for payroll, mobilization, bonding, or growth.
We’ve helped dozens of contractors claim hundreds of thousands in overlooked refunds. If your business is performing but cash is tight, this is the move.
Stop Leaving Free Money on the Table
You’ve already paid the IRS. The IRS rule for cashing out NOL losses lets you get some of that money back—fast. It’s your money. It’s sitting there. And if you don’t claim it, it’s gone.
This isn’t theory. This isn’t “someday.” This is now.
Icarus Fund Can Help You Get Paid—Without Debt
The fastest cash you’ll ever get for your business may come from the IRS. Not a loan. Not an investor. A refund.
If you’ve had a loss and you’ve paid taxes in the past, let Icarus Fund unlock it.
👉 Reach out to Icarus Fund today. Let’s review your losses and see how much the IRS owes you. You’ve already won the contract—now get the capital to perform.
