Carryback - sustany/dvg GitHub Wiki

Carryback in tax accounting refers to computing the current year's taxes, profits & losses, deductions, etc. and subsequently revising a previous year�s filed tax return to reduce some amount of tax liability. (See also:�carryover)

A loss carryback is a case where a business while encountering net operating loss during the current year, applies this loss to an already filed preceding year's tax return. Due to application of additional loss in preceding year�s tax return, the tax liability for the previous year gets reduced. This in turn helps the business to receive a refund of previously paid taxes (if any).�