Keep Corporation joined an affiliated group by merger in 2010.The group generated a consolidated 2010 NOL,and Keep's share of the loss was $50,000.Lacking an election by the parent to the contrary,Keep can carry the loss back to its separate 2008 return and claim a separate refund.

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When a corporation becomes part of an affiliated group, it becomes subject to group filing rules, but it may still have NOLs that can be carried back or forward to years when it filed separately. In this case, Keep Corporation can carry back its share of the consolidated NOL to its 2008 separate return and claim a separate refund, assuming there is no election by the parent to waive the carryback period for the group.

Keep Corporation Joined an Affiliated Group by Merger in 2010