Question

What is the purpose of the carryback and the carryforward provisions in the tax laws​

Answer 1

Answer:

Tax carry-forward allows a reduction of tax liability for future taxes, but loss carry-back allows a company to reclaim money that they have already paid in taxes. If losses were large, a company could carry back the loss for two years

Answer 2

Answer:

A net operating loss (NOL) carryback allows a firm to apply a net operating loss to a previous year's tax return, for an immediate refund of prior taxes paid. A tax loss carryforward, on the other hand, applies a tax loss toward future years' returns.