Corporations (other than S corporations) file Form 1139 to apply for a quick refund of taxes from:

A corporation may elect to carry an NOL forward instead of first carrying it back. Make this election by attaching a statement to a timely filed tax return (including extensions) for the tax year of the NOL indicating that the corporation is electing to relinquish the entire carryback period under section 172(b)(1) for any NOLs incurred in that tax year. Also, if the corporation timely filed its return for the loss year without making the election, it may make the election on an amended return filed within 6 months of the due date of the loss year return (excluding extensions). Attach the election to the amended return and write “Filed pursuant to section 301.9100-2” on the election statement. File the amended return at the same address the original return was filed. Once made, the election is irrevocable (except as described below).

Generally, the corporation must file Form 1139 within 12 months of the end of the tax year in which an NOL, net capital loss, unused credit, or claim of right adjustment arose. For an exception that applies to carrybacks of NOLs arising in a tax year ending in 2001 or 2002, see the instructions for line 1a on page 2.

The corporation must file its income tax return for the tax year no later than the date it files Form 1139.

If the corporation filed Form 1138, Extension of Time for Payment of Taxes by a Corporation Expecting a Net Operating Loss Carryback, it can get an additional extension of time to pay. To do so, file Form 1139 by the last day of the month that includes the due date (including extensions) for filing the return for the tax year from which the NOL carryback arose.

File Form 1139 with the Internal Revenue Service Center where the corporation files its income tax return.

Do not mail Form 1139 with the corporation's income tax return.

Attach to Form 1139 copies of the following, if applicable, for the year of the loss or credit.

Also attach to Form 1139:

The IRS will process this application within 90 days of the later of:

The payment of the requested refund does not mean the IRS has accepted the application as correct. If the IRS later determines the claimed deductions or credits are due to an overstatement of the value of property, negligence, disregard of rules, or substantial understatement of income tax, the corporation may be assessed penalties. Interest is also charged on any amounts erroneously refunded, credited, or applied.

The IRS may need to contact the corporation or its authorized representative for more information. To designate an attorney or representative, attach Form 2848, Power of Attorney and Declaration of Representative, to Form 1139.

An application for a tentative refund is not treated as a claim for credit or refund. It may be disallowed if there are any material omissions or math errors that are not corrected within the 90-day period. If the application is disallowed in whole or in part, no suit challenging the disallowance may be brought in any court. But the corporation may file a regular claim for credit or refund. See Filing Form 1120X or Other Amended Return below.

Any amount applied, credited, or refunded based on this application that the IRS later determines to be excessive may be billed as if it were due to a math or clerical error on the return.

Corporations may file Form 1120X (or other amended return, such as an amended Form 1120-PC) instead of Form 1139. Generally, the corporation must file an amended return within 3 years after the date the return was due for the tax year in which the NOL, net capital loss, or unused credit arose (or, if later, the date the return for that year was filed).

The corporations must file Form 1120X (or other amended return) instead of Form 1139 to carry back:

For details, see Rev. Rul. 82-154, 1982-2 C.B. 394.

The procedures for processing an amended return and Form 1139 are different. The IRS is not required to process an amended return within 90 days. However, if we do not process it within 6 months from the date you file it, the corporation may file suit in court. If we disallow a claim on an amended return and the corporation disagrees with that determination, the corporation must file suit no later than 2 years after the date we disallow it.

Include the room, suite, or other unit number after the street address. If the Post Office does not deliver mail to the street address and the corporation has a P.O. box, enter the box number instead of the street address.

An NOL is the excess of the deductions allowed over gross income, computed with the following adjustments.

Use the following rules to determine the applicable carryback period for an NOL (or portion thereof). NOLs are first applied to the earliest year in the carryback period. Any unused amount is carried to the next preceding tax year in the carryback period (see section 172(b)(2) for details). Any amount not used during the carryback period is carried forward up to 20 years. For details, see section 172.

A net capital loss may be carried back 3 years and treated as a short-term capital loss in the carryback year. The net capital loss may be carried back only to the extent it does not increase or produce an NOL in the tax year to which it is carried. For special rules for capital loss carrybacks, see section 1212(a)(3).

If a tentative refund is claimed based on a carryback of a GBC, attach a copy of the appropriate credit form for the tax year in which the credit arose. Except as provided in section 39(d), a GBC may be carried back 1 year (3 years if the GBC arose in a tax year beginning before 1998). Refigure the credit for the carryback year on Form 3800, General Business Credit, Form 8844, Empowerment Zone and Renewal Community Employment Credit, or Form 8884, New York Liberty Zone Business Employee Credit, and attach it to Form 1139.

Foreign taxes taken as a credit in a prior year may be reduced to zero by the carryback of an NOL or a net capital loss on Form 1139. See Filing Form 1120X above.

If the corporation files Form 1139 to carry back a loss or credit to a year in which it joined in the filing of a consolidated return, the IRS is required to send the refund for that year directly to, and in the name of, the common parent. See Regulations sections 1.1502-78(a) and (b).

If the corporation is filing Form 1139 for a short tax year created when the corporation became a qualified new member of a consolidated group (see Exception for qualified new members of a consolidated group on page 1), the corporation must answer “Yes” on line 5a and enter the tax year ending date, name, and EIN of the new common parent on line 5b.

In columns (a), (c), and (e), enter the amount for the applicable carryback year as shown on your original or amended return or as adjusted by the IRS. If the IRS has not acted on an amended return use the amounts from it and attach a copy of it with “Attachment to Form 1139” written across the top.

Use columns (a) and (b), (c) and (d), or (e) and (f) to enter amounts before and after carryback for each year to which the loss is carried. Start with the earliest carryback year. Use the remaining columns for each consecutive preceding year until the loss is fully absorbed. Enter the ordinal number of years the loss is being carried back and the date the carryback year ends in the spaces provided above columns (a) and (b), (c) and (d), or (e) and (f) (see example below).

Example. The loss year is the 2001 calendar year and the loss is carried back 5 years. Enter “5th” and “12/31/96” in the spaces provided above columns (a) and (b). After making the entries, it reads “5th preceding tax year ended 12/31/96.”

When completing lines 16 through 25, take into account any write-in amounts that may have appeared on the original return. For example, for a tax year beginning in 2001, if Form 1120, Schedule J, line 3, was increased by deferred tax under section 129, include that amount on line 16.

Enter in columns (b), (d), and (f) the amounts from columns (a), (c), and (e), respectively.

Enter the capital loss carryback, but not more than capital gain net income. Capital gain net income is figured without regard to the capital loss carryback of the loss year or any later year. Attach a copy of Schedule D (Form 1120) for the carryback year. Enter the amount of the capital loss carryback as a positive number on line 12.

When carrying over a net capital loss to a later tax year, reduce the amount of the net capital loss that may be used in the later years by the amount of the net capital loss deductions used in the earlier years. For details, see section 1212(a)(1).

See the instructions for line 1a on page 2 to figure the carryback period. NOLs are first applied to the earliest year in the carryback period. Any unused amount is carried to the next tax year in the carryback period (see section 172(b)(2) for details). Any amount not used during the carryback period is carried forward up to 20 years. For details, see section 172.

In columns (b), (d), and (f), enter the refigured income tax after taking into account the carryback(s). See the instructions for the corporate income tax return for the applicable year for details on how to figure the tax. Attach a computation of the refigured tax. Take into account section 1561 when refiguring the income tax.

For columns (b), (d), and (f), refigure the alternative minimum tax. Complete and attach Form 4626 for the appropriate year.

In columns (b), (d), and (f), enter the total of the corrected GBCs. Attach all Forms 3800, 8844, and 8884 used to redetermine the GBC.

See the corporation's tax return for the carryback year for any additional credits such as the nonconventional source fuel credit, the possessions tax credit, etc., that will apply in that year. If any entry is made on line 20, attach a statement identifying the credits claimed.

For columns (b), (d), and (f), refigure any other taxes not mentioned above, such as recapture taxes, that will apply in that year. If an entry is made on this line, identify the taxes on an attached statement.

For a tentative refund based on an overpayment of tax under section 1341(b)(1), enter the overpayment on line 28 and attach a computation showing the information required by Regulations section 5.6411-1(d).