How Much Does The IRS Owe Your Small Business?

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Small business owners deserve a pat on the back. They’ve made it through one of the worst recessions in our country’s history and even though many believe we are now on the uptick, the challenges aren’t over for everyone.

The American Recovery and Reinvestment Act provided relief and opportunities for some small business owners. Now there’s a little more help.

In November 2009 a bill was signed into law Рthe Worker, Homeownership, and Business Assistance Act of 2009, which provides an additional boost for small business owners who experienced a loss in 2009 ,but had taxable income in one or more of the past 5 years. The new law allows a small business with a Net Operating Loss (NOL) in 2009 to apply that to taxes paid between 2004 and 2008, providing the business owner with a potential infusion of cash in the form of a refund.

This law applies to Eligible Small Businesses, or ESB’s, as defined by the Internal Revenue Service. In general, the definition includes corporations, partnerships and sole proprietorships with annual sales of not more than $15 million.

As with any personal or tax related matter, make sure you consult your tax professional to see how this law applies to your specific business.


  • Loss Carryback Calculator
  • 5-Year Carryback of 2008 and 2009 Net Operating Losses (NOLs) for Eligible Small Businesses (ESBs) on
  • Instructions for Corporations from (Form 1139).
  • Instructions for Individuals, Estates, and trusts) from

3 Comments on "How Much Does The IRS Owe Your Small Business?"

  1. Eric March 9, 2010 at 9:44 pm ·

    Great reminder about new legislation that can save small business owners money–when they most need it.

  2. Lyla Burns May 16, 2012 at 11:06 am ·

    Thank you for this article. I will pat myself on the back for being able to make my small business succeed in this recession! It has been tough! Luckily I have outsourced bookkeeping services that take care of most of the tax stuff so I think I’m good in that department. Thanks again!

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