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To: Tenchusatsu who wrote (168033)	7/12/2002 1:38:59 AM
From: Amy J	Read Replies (3) \| Respond to of 186894

Hi Tenchusatsu, here's a thought: Tax is a function of profits. So, does the IRS owe money to all those companies that overstated their revenues if they had profits that were also overstated? Regards, Amy J

To: Tenchusatsu who wrote (168033)	7/12/2002 2:06:27 AM
From: L. Adam Latham	Respond to of 186894

Tench: Re: There are lots of companies that made a profit over the last two years, yet are now underwater. Are you saying that the Federal government now has to pay corporate welfare to all these companies, AMD included? Qgambit is correct on the tax law in this case, and any corporation (or individual - they are treated the same) can apply the NOL to the two previous years, file an amended return, and get a refund. If the loss isn't used up in the two previous years, it can be used to offset gains for the next 20 years (note in that case the corporation won't get a refund - their tax will just be $0 until they've used up the loss). There's nothing sinister about his. Just think if you worked for yourself as a sole-proprietor and had a $10,000 loss this year. You're entitled to a tax refund if you had a profit and paid taxes in the previous two years. Adam

To: Tenchusatsu who wrote (168033)	7/12/2002 5:08:55 AM
From: qgambit	Respond to of 186894

<<Qgambit, that doesn't make sense to me. There are lots of companies that made a profit over the last two years, yet are now underwater. Are you saying that the Federal government now has to pay corporate welfare to all these companies, AMD included? >> The NOL benefit only refunds actual taxes paid. If a company lost money for more than 2 years then they would stop receiving the refunds . For instance, amazon does not claim any tax benefit from their NOLs. biz.yahoo.com