I have a client that I have to amend a 2008 tax C corporation return that will cost them about $10,000 in tax, penalties and interest. If 2009 has a loss know I can carry it back to 2008, but can I do them at the same time? Can I amend the return and include the 2009 carry back or do I have to file 2008 amended pay the tax and then file the carry back to get a refund. I know that I’ll be out the penalty and interest.
You don't have to pay the tax before filing the carryback. However, I believe you'd owe interest for the period up until the carryback is actually carried back.
File the 2008 with payment of interest and penalties, wait for it to process (pretty darn quick for entity e-file, which works fine for an amended 1120), then when the carryback return is done, file the carryback, and show the 2008 tax as still unpaid on the 1139.
(I'm unaware of an election for a 1-year carryback, so offer no opinion on your ability to do such a thing.)
