School Street Associates Ltd. Partnership v. District of Columbia

The District of Columbia tax provision under consideration allows corporations, unincorporated businesses or financial institutions to take as deductions in computing net income, net operating losses in prior or subsequent years “in the same manner as allowed under § 172 of the Internal Revenue Code of 1986 and as reported on any federal tax return for the same taxable period, except that no net operating losses may be carried back to any year ending before January 1, 1988.” D.C.Code § 47-1803.3(a)(14). The Office of Tax and Revenue (OTR) has consistently interpreted this provision to mean…