Net operating loss (NOL) carry forward allows the firm to apply the net operating loss to the previous year’s tax return for an immediate refund of previously paid taxes.
On the other hand, tax loss carryforward applies the tax loss to income in future years.
Carry forward - and, as a result, immediate refund of previously paid taxes - is usually more profitable than carry forward, due to the time value of money.
NOL carryover provisions in the tax code have been increased, reduced, eliminated entirely, and reinstated several times over the years.
It is important to be aware of the current state of the refund tax regulations.