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section 172 to 7 years for net operating losses incurred in any
taxable year ending after December 31, 1975. Section 207(a)(1)
of the Economic Recovery Tax Act of 1981, Pub. L. 97-34, 95 Stat.
225, further extended the carryforward period under section 172
to 15 years for net operating losses incurred in any taxable year
also ending after December 31, 1975. Pub. L. 97-34, sec.
209(c)(1)(A), 95 Stat. 226.
Section 102(d)(2) of the Technical Corrections Act of 1982,
Pub. L. 97-448, 96 Stat. 2370, clarified that the 15-year
carryforward period of section 207(a)(1) of the Economic Recovery
Tax Act of 1981 did not apply to any amount which, under the law
in effect on the day before enactment of the Act, could not be
carried to a taxable year ending in 1981. The 1976 and 1981
amendments to section 172, therefore, did not extend the 5-year
carryforward period for petitioners’ 1975-NOL.
In 1978, Congress enacted the Bankruptcy Act of 1978, which
expressly provided in certain circumstances for suspension,
during bankruptcy proceedings, of periods of limitation
applicable to use by a bankrupt taxpayer of tax attributes not
utilized by a bankruptcy estate. 11 U.S.C. sec. 346(i)(2)
(1994).3 That statute provided that the suspension provisions of
3 11 U.S.C. sec. 346(i)(1) and (2) provides as follows:
(i)(1) In a case under chapter 7, 12, or 11 of this
title concerning an individual, the estate shall succeed to
the debtor's tax attributes, including--
(continued...)
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Last modified: May 25, 2011