Annex-RMC-NOLCO

To provide workaround, step-by-step filing procedures for reflecting NOLCO amounts in Forms 1701, 1702-RT and 1702-MX filed through the offline eBIRForms package and eFPS, particularly where the NOLCO Schedule/Table cannot accommodate the NOLCO amounts.

Bureau of Internal RevenueIndependent research copy

Document type: DOC
Index unit: bir-text-annex-rmc-nolco
Year: Not classified
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This annex to RMC No. 81-2026 provides step-by-step workaround procedures for reporting NOLCO amounts in returns filed through the offline eBIRForms package and eFPS, applicable to Forms 1701, 1702-RT and 1702-MX. Filers must first reflect NOLCO in the NOLCO Schedule/Table to the extent the system allows; NOLCO amounts that cannot be accommodated (offline: those incurred in taxable years 2020 and 2021; eFPS: remaining amounts) must be entered under the Special Allowable Itemized Deductions schedule, indicating the NOLCO year claimed (e.g., "NOLCO – TY 2020") and using "RA 11494" as the legal basis. The total NOLCO claimed must not exceed the allowable NOLCO deduction for the taxable year. After entry, click "Validate" and, once validation succeeds, click "Submit" to file the return.