A corporation (other than an S corporation) files Form 1139 to apply for a quick refund of taxes from:

A corporation can 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)(3) for any NOLs incurred in that tax year.

If the corporation timely filed its return for the loss year without making the election, it can 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.

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 NOL that is a loss of an electric utility company arising in tax years ending in 2003, 2004, or 2005, the corporation is allowed an additional 24 months to file Form 1139.

An exception also applies for corporations filing Form 1139 to claim a tentative refund under section 1400N(o). See page 5 of the instructions.

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.

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 can 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.

A corporation can get a refund by filing 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 an NOL, net capital loss, or unused credit arose (or, if later, the date the return for that year was filed).

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 a corporation files it, the corporation can 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.

For corporations, a net operating loss (NOL) is the excess of the deductions allowed over gross income, computed with the following adjustments.

The carryback period for an NOL generally is 2 years. Special rules (discussed below) apply to the portion of an NOL attributable to:

Specified Liability Losses

Generally, a specified liability loss is a loss arising from:

1. Product liability,

2. An act (or failure to act) that occurred at least 3 years before the beginning of the loss year and resulted in a liability under a federal or state law requiring:

   1. Reclamation of land,

   2. Decommissioning of a nuclear power plant (or any unit thereof),

   3. Dismantling of a drilling platform,

   4. Remediation of environmental contamination, or

   5. Payment under any workers compensation act.

Any loss from a liability arising from 2a through 2e, above, can be taken into account as a specified liability loss only if the corporation used an accrual method of accounting throughout the period in which the act (or failure to act) occurred. For details, see section 172(f).

To the extent an NOL is a specified liability loss, the carryback period for that part of the NOL is generally 10 years.

However, the corporation can make an irrevocable election to figure the carryback period for a specified liability loss without regard to the special 10-year carryback rule. To make the election, attach to the corporation's timely filed tax return for the loss year a statement that the corporation is electing to have the carryback period for the NOL under section 172(b)(1)(C) determined without regard to the special 10-year carryback rule. If the corporation timely filed its tax return without making the election, it can make the election on an amended return filed within 6 months of the due date of the 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 used for the original return.

Gulf Opportunity Zone (GO Zone) public utility casualty losses.   A corporation can make an irrevocable election to treat a qualifying public utility casualty loss as a GO Zone public utility casualty loss. A GO Zone public utility casualty loss is treated as a product liability loss in determining the amount of the corporation's specified liability loss to which the 10-year carryback period applies.

  A qualifying public utility casualty loss is any casualty loss of public utility property (as defined in section 168(i)(10)) located in the GO Zone if:

• The loss is allowed as a deduction under section 165, and

• The loss is by reason of Hurricane Katrina.

  See section 1400N(j) for more details. Also, see Pub. 4492, Information for Taxpayers Affected by Hurricanes Katrina, Rita, and Wilma, for a list of counties and parishes included in the GO Zone.

  To make the election, attach to the corporation's timely filed tax return for the loss year a statement that the corporation is electing to treat any qualifying public utility casualty loss as a GO Zone public utility casualty loss under section 1400N(j)(2)(C). If the corporation timely filed its tax return without making the election, it can make the election on an amended return filed within 6 months of the due date of the 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 used for the original return. Once made, the election is irrevocable for that tax year.

  

If the corporation elects to treat a qualifying public utility casualty loss as a GO Zone public utility casualty loss, it cannot also take the loss into account in determining the portion of the corporation's NOL that qualifies for the 5-year carryback period as a qualified GO Zone loss (discussed later under Qualified Gulf Opportunity Zone (GO Zone) Loss ). The corporation also cannot elect to deduct the loss as a disaster loss occurring in a prior tax year under sections 1400N(o) or 165(i).

Qualified Gulf Opportunity Zone (GO Zone) Loss

A qualified GO Zone loss is the smaller of:

1. The NOL for the tax year reduced by any specified liability loss, or

2. The total of the following deductions (to the extent they are taken into account in computing the NOL for the tax year).

   1. Qualified GO Zone casualty losses (as defined in section 1400N(k)(3)).

   2. Moving expenses paid or incurred after August 27, 2005, for the employment of an individual whose main home was in the GO Zone before August 28, 2005, who was unable to remain in that home because of Hurricane Katrina, and whose main job with the corporation (after the move) is in the GO Zone;

   3. Temporary housing expenses paid or incurred after August 27, 2005, to house employees of the corporation whose main job location is in the GO Zone;

   4. Depreciation or amortization allowable for any qualified GO Zone property (as defined in section 1400N(d)(2)) for the year placed in service (even if an election was made not to claim a special depreciation allowance for such property); and

   5. Repair expenses (including expenses for the removal of debris) paid or incurred after August 27, 2005, for any damage from Hurricane Katrina to property located in the GO Zone.

The portion of an NOL that is a qualified GO Zone loss can be carried back 5 years.

A corporation can make an irrevocable election to figure the carryback period for a qualified GO Zone loss without regard to the special 5-year carryback rule. To make the election, attach to the corporation's timely filed tax return for the loss year a statement that the corporation is electing to have the carryback period for the NOL under section 1400N(k)(1)(A)(i) determined without regard to the special 5-year carryback rule. If the corporation timely filed its tax return without making the election, it can make the election on an amended return filed within 6 months of the due date of the 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 used for the original return.

If a qualified GO Zone casualty loss (listed in a, above) is taken into account in computing an NOL that is treated as a qualified GO Zone loss, such casualty loss cannot also be deducted as a disaster loss occurring in a prior tax year under section 165(i).

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.

If the corporation receives its mail in care of a third party (such as an accountant or an attorney), enter on the street address line “C/O” followed by the third party's name and street address or P.O. box.

If the corporation is claiming a tentative refund based on the carryback of any of the NOLs discussed under Definitions and Special Rules for Net Operating Losses (NOLs), include the amount of the carryback on line 1a. Attach any statements required. See What To Attach on page 1.

A net capital loss can be carried back 3 years and treated as a short-term capital loss in the carryback year. The net capital loss can 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 an unused general business credit (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), an unused GBC can 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 any of the following forms and attach it to Form 1139.

Complete line 1d if Form 1139 is filed to claim a tentative refund based on either of the following.

Election to deduct a public utility property disaster loss under section 1400N(o).   For tax years ending after August 27, 2005, a corporation can elect to deduct a disaster loss for public utility property in the 5th tax year preceding the year of the loss. A loss eligible for this election is any loss with respect to public utility property located in the GO Zone attributable to Hurricane Katrina. Public utility property, for this purpose, is defined in section 168(i)(10), except that the property is not required to be used predominantly in a rate-regulated trade or business.

  The corporation can make the election by filing Form 1139 to claim a tentative refund. Attach a statement indicating that the corporation is making the election under sections 1400N(o) and 165(i) to deduct a public utility property disaster loss in the 5th preceding tax year. Complete and attach Form 4684 and, if required, Form 4797 for the 5th preceding year. Include the loss on line 1d. Also, see the instructions for line 13 below.

  The corporation can also make the election by filing a Form 1120X or other amended return for the 5th preceding tax year. The corporation should attach the same statement and forms described above that are attached to Form 1139. See Filing Form 1120X or Other Amended Return on page 2.

  The election must be made by December 20, 2006.

  

An election to deduct a public utility property disaster loss in the tax year immediately prior to the tax year of the disaster instead of in the 5th preceding tax year, cannot be made on Form 1139. This election must be made by filing the corporation's return or Form 1120X (or other amended return) for the prior year and claiming the disaster loss on it. See Filing Form 1120X or Other Amended Return , on page 2.

Foreign taxes taken as a credit in a prior year can be reduced to zero by the carryback of an NOL or a net capital loss on Form 1139. A corporation must file Form 1120X (or other amended return) instead of Form 1139 to carry back a prior year foreign tax credit released due to an NOL or net capital loss carryback. See Filing Form 1120X or Other Amended Return on page 2.

If the common parent of a consolidated group files Form 1139 to carry back a loss or credit arising in a corporation's separate return year to a year in which the corporation 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 (or agent designated under Regulations section 1.1502-77(d) for the carryback year). 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 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 the amended return 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 pairs of 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).

For example, the loss year is the 2005 calendar year and the loss is carried back 5 years. Enter “5th” and “12/31/00” in the spaces provided above columns (a) and (b). After making the entries, it reads “5th preceding tax year ended 12/31/00.”

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 2005, if Form 1120, Schedule J, line 2, was increased by deferred tax under section 1291, 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 can 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).

If the corporation is electing to carry back a public utility property disaster loss under section 1400N(o) to the 5th preceding tax year, enter the amount of the loss on the dotted line next to line 13. Subtract the carryback amount from the total for line 13. See the instructions for line 1d.

See Definitions and Special Rules 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. Any amount not used during the carryback period is carried forward up to 20 years.

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, 6478 (for carryback years beginning in 2005), 8835 (for carryback years beginning in 2004), and 8884 (for carryback years beginning before 2005) 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 line 24, 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).