Individual Income-Net Operating Loss FAQ’S

In 2016, the Georgia Department of Revenue began requiring a signed Form 500-NOL be filed separately from the return to establish a net operating loss by individual taxpayers and fiduciaries. Form 500-NOL has historically been used as a way for Georgia individual taxpayers and fiduciaries to carryback losses from a loss year to reduce taxable income in a previous tax year. Carryback of the net operating loss, established in the loss year, would reduce taxable income in the year to which the loss was carried.

In December the Department released notices to taxpayers that had not separately filed a signed Form 500-NOL to establish these net operating losses. The Department has requested additional information and is providing a list of Frequently Asked Questions in relation to the filing of Form 500-NOL. The frequently asked questions eliminate some of the confusion created by the initial notice in where specific information was requested to verify the losses. Please review the FAQs attached and consult your tax advisor if you have additional questions.

State of Georgia, Department of Revenue

Taxpayer Services Division: Individual Income Tax - Net Operating Loss                                Last version: 1/21/2020

 

What documents can I submit to show proof of my loss after receiving a disallowance letter?

  • For tax years 2015 and prior, a utilization schedule can be submitted to verify the losses.
  • Tax years 2016 and forward will require a Form 500-NOL. Include copies of federal returns for the loss year and applicable schedules including K-1’s.

Where can I submit my supporting documentation?

  • The Form 500 NOL should be mailed to the address listed on the return.
  • The NOL utilization schedule can be upload via GTC within 30 days of receiving a “notice of return change” letter. Please reference the document submission key listed on the notice.
  • After 30 days, utilization schedules can be sent via email to: revenue.taxpayerservice@dor.ga.gov. Please type in the subject line: NOL Utilization Schedule.

Why was my NOL disallowed/reduced?

  • An NOL credit certificate does not exits OR
  • The amount of credit available was lesser than the amount requested.

What form should be submitted to generate a net operating loss?

  • A Form 500-NOL is required to generate a loss.
  • We are accepting a Utilization schedule for tax years 2015 and prior.

Where can the Form 500-NOL be located?

  • The return is accessible on the Department’s website: www.dor.ga.gov. The return must be fully completed to avoid delays in processing.

My software currently allows me to complete my Form 500-NOL electronically. Is it acceptable to file via this method?

  • No. The Form 500-NOL return must be submitted separately via paper only. Returns submitted as an attachment will not be processed.

Can my Form 500 NOL calculate a positive amount?

  • No. In order to have a net operating loss, the amount on line 43 (Page 2) should have a negative figure.

Am I required to indicate the type of loss on the Form 500 NOL?

  • Yes. The loss type should be specified.

How can I verify my current net operating loss amount available prior to claiming?

  • The information is available via the Georgia Tax Center under “manage my credits”.

What will delay my Form 500 NOL from processing?

  1. All required pages are not complete.
  2. Unsigned returns.
  3. Miscalculations.
  4. Missing supporting documents.

Download the example of Individual NOL Utilization Table