NET OPERATING LOSSES

The Federal return allows for a 5-year carryback of net operating losses incurred in 2001 and 2002. Iowa has its own net operating loss provisions for a 2-year carryback, and Iowa law will not be changed based on the passage of the Federal bill. Therefore, for net operating losses incurred in 2001 and 2002, the loss carryback for Iowa purposes will remain at 2 years with exceptions as noted on form IA 123.

See line 24.