The Department issued a corporate income tax return adjustment notice based on prior year returns, adjusting the net operating loss (NOL) deductions claimed on the taxpayer’s 2021 amended return. The Department determined that the NOLs reported for closed tax years 2016-2018, and for tax year 2020 did not align with the NOL amounts previously reported by the taxpayer. The Taxpayer protested, asserting that the earlier NOLs on the 2020 return were miscalculated due to preparer error and the revised NOLs reported on the 2021 return should be accepted, and that the interest should be abated. The Hearing Officer concluded that the Department lacks statutory authority to revise NOL amounts for the closed tax years and lacks statutory authority for an abatement of interest. The protest was denied.
