New York State and City Prior Net Operating Loss Conversions

Common Errors and Important Highlights

Corey L. Rosenthal, JD, Peter Rabinowitz, JD, and Annie Yang, CPA

At a recent state and local tax conference, the New York State Department of Taxation and Finance (DTF) and the New York City Department of Finance (DOF) addressed the high percentage of corporate tax returns that contain common errors regarding the prior net operating loss conversion (PNOLC). This article will summarize some important factors that business owners and advisors should be aware of in connection with reporting the PNOLC, as noted at the conference.