Is a net operating loss (NOL) carry-back allowed on the Arkansas return?
No. ACA 26-51-427 states a loss that occurred in an income year beginning on or after January 1, 1987, must be carried-forward over the next succeeding tax years for a total period of five (5) years or until the NOL is exhausted or absorbed, whichever occurs earlier. A tax year loss must be adjusted by all non-taxable income in arriving at an established NOL available for the five (5) year carry-forward provision.
