The 1120 changed its status to an 1120-S. Where do I enter NOL in the 1120-S return?
If a corporation becomes an S corporation and brings with it net operating losses (NOLs), the NOL is not generated for the 1120-S return because it cannot be carried to an 1120-S.
It either runs out within the years allowable for the NOL by statute or is used if the S corporation terminates its “S” status within those years.
For more information see the Instructions for Form 1120-S and Publication 542. General rules for net operating losses are found in Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts. IRC sections include 172, 269, and 381-384.