Final answer:
Businesses or individuals using tax loss carrybacks are required to submit a written carryback disclosure with their tax return for IRS notification.
Step-by-step explanation:
The use of tax loss carrybacks still requires a written carryback disclosure to be delivered. This is a provision in tax law that allows a business or individual to use a net operating loss from one year to offset taxable income in previous years, resulting in a tax refund.
When choosing to apply a net operating loss to prior tax years, taxpayers typically must inform the Internal Revenue Service (IRS) by attaching a statement to their tax return that specifies the amount of the loss being carried back and the year to which it is being carried.