carryback
/ˈkɛriˌbæk/
noun
- A tax provision that allows a business to apply a current year's net operating loss to previous years' profits in order to reduce taxes owed for those earlier years.
- The company used a carryback to reclaim taxes paid during the profitable years.
- Filing for a carryback can help small businesses recover from a bad financial year.
- The accountant explained how a net operating loss carryback works.