CA AB2855

Allows taxpayers to file applications for tentative carryback adjustments of taxes for prior years affected by net operating loss carrybacks, conforming California law to federal Internal Revenue Code Section 6411 with a 180-day filing period instead of 90 days.

Extends the statute of limitations for proposing deficiency assessments on prior taxable years affected by net operating loss carrybacks to match the period allowed for the loss year itself.

Permits the Governor to suspend tentative carryback and refund adjustments by proclamation if an economic emergency is declared, with suspension expiring at the end of the specified taxable year.

Modifies the calculation of interest on overpayments resulting from net operating loss carrybacks by treating the overpayment date as the filing date of the loss year rather than the prior year.

Applies these changes to tentative carryback adjustments and deficiency assessments filed on or after January 1, 2019.