Texas Paving Contractor Sues Over Net Operating Loss Carryback

Jones Bros. Dirt & Paving Contractors, Inc. is suing for a tax refund of over $686,000, saying the IRS wrongly failed to grant it a net operating loss carryback.

The complaint, filed Oct. 5 in the US District Court for the Western District of Texas, alleges the company carried back a net operating loss from the 2020 tax year to the 2016 tax year under Internal Revenue Code Section 172(b)(1)(D), which allows a five year carryback of losses arising in 2018-2020. But it never received a notice of disallowance or a refund, Jones Bros. said.

The complaint seeks a declaratory ...