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Quit wishful thinking…'09 returns will be filed early!

Lending to businesses and to business owners will be harder in the recovery than it was in the recession. The pre-recession year’s are dropping off our radar and the worst years of the recession are coming on.

Don’t count on it…

If you are hoping that you won’t have to take the ’09 returns into account until October 2010, I think you’ll be disappointed. Borrowers who often extend their return and legitimately file as late as October may file early next year.


Money now or money later?

Why would they file early? If their business kicked off a Net Operating Loss the congress has provided a new opportunity to carry those losses back further and with more flexibility to allow for a refund of previously paid taxes.

If your borrower already took this into account and paid in less taxes they may not be in a hurry to file. But if they did not, they’ll want that refund as soon as possible.

I don’t think we can count on the usual extensions delaying the ’09 returns until October.

Guideline changes needed now…

I am talking with Chief Lending Officers and seasoned lenders from around the country about how to qualify our borrowers (business loans or personal loans to business owners) as the historical information gets worse just as the business starts to do better.

Any ideas?

About the Author
Linda Keith CPA is an expert in credit risk readiness and credit analysis. She trains banks and credit unions throughout the United States, both in-house and in open-enrollment sessions, on Tax Return and Financial Statement Analysis. She is in the trenches with lenders, analysts and underwriters helping them say "yes" to good loans. Creator of the Tax Return Analysis Virtual Classroom at, she speaks at banking associations on risk management, lending and director finance topics.
  1. Pere Mageo

    Interesting observation. I just spoke with a customer last week who said he’s not going to hold off filing 2009 returns in order to take advantage of carry forward losses. We could see alot of this kind of thing over the next few of years.