Instructions For Form 1045 (Rev. February 2006)

1040X within 90 days. However, if we

for each carryback year. For more

must sign this Form 1045, but do not

do not process it within 6 months

details, see section 1212(c).

need to sign the other Forms 1045.

from the date you file it, you can file

General rule. You generally must

Line 9

suit in court. If the IRS disallows your

carry back the entire NOL to the 2nd

claim on Form 1040X and you

If an NOL or net section 1256

tax year before the loss year. Any

disagree with that determination, you

contracts loss carryback eliminates or

loss not used in the 2nd preceding

must file suit no later than 2 years

reduces a prior year foreign tax

year is then carried to the 1st

after the date we disallow it.

credit, you cannot use Form 1045 to

preceding year. Any loss not applied

carry the released foreign tax credits

in the 2 preceding years can be

Additional Information

to earlier years. Also, if the released

carried forward up to 20 years. The

foreign tax credits result in the

2-year carryback period does not

For more details on NOLs, see Pub.

release of general business credits,

apply to the portion of an NOL

536, Net Operating Losses (NOLs)

you cannot use Form 1045 to carry

attributable to an eligible loss, a

for Individuals, Estates, and Trusts.

the released general business credits

farming loss, a qualified GO Zone

to earlier years. Instead, you must file

loss, or a specified liability loss.

Form 1040X or other amended return

Eligible losses. To the extent the

Specific Instructions

to claim refunds for those years. For

NOL is an eligible loss (defined on

details, see Rev. Rul. 82-154, 1982-2

page 1), it is carried back to the 3rd

Address

C.B. 394.

tax year before the loss. Any loss not

used in that year is carried to the 2nd

Lines 10 Through 27—

P.O. box. Enter your box number

and then the 1st preceding year. Any

only if your post office does not

Computation of

such loss that is not applied in the 3

deliver mail to your street address.

preceding years can be carried

Decrease in Tax

Foreign address. Enter the

forward up to 20 years.

information in the following order:

Use one pair of columns to enter

Only the eligible loss portion of the

City, province or state, and country.

amounts before and after carryback

NOL can be carried back 3 years.

Follow the country’s practice for

for each year to which the loss is

Example. You have a $20,000

entering the postal code. Do not

being carried. Start with the earliest

NOL of which only $5,000 is an

abbreviate the country name.

carryback year. A net section 1256

eligible loss. The $5,000 eligible loss

contracts loss can be carried back 3

is carried back 3 years, but the

Line 1b—Unused

years. See the instructions for line 10

remaining $15,000 loss is carried

on this page to figure the tax years to

General Business Credit

back only 2 years, although you had

which you can carry an NOL. Use the

modified taxable income of more than

If you claim a tentative refund based

remaining pairs of columns for each

$5,000 in the 3rd preceding year.

on the carryback of an unused

consecutive preceding tax year until

Farming losses. To the extent the

general business credit, attach a

the loss is fully absorbed. Enter the

NOL is a farming loss (defined on

detailed computation showing how

ordinal number of years the loss is

page 1), that part of the loss is

you figured the credit carryback and a

being carried back and the date the

carried back to the 5th tax year

recomputation of the credit after you

carryback year ends in the spaces

before the loss. Any such loss not

apply the carryback. Make the

provided in the headings above line

used in that year is carried to the 4th

recomputation on Form 3800 (or

10 for each pair of columns.

preceding year and then applied

Form 8844 or Form 8884, if

Example. Your tax year is the

consecutively forward through the 1st

applicable) for the tax year of the

2005 calendar year and you are

preceding year. Any such loss not

tentative allowance.

carrying an NOL back 2 years. You

applied in the 5 preceding years can

enter “2nd” and “12/31/03” in the left

If you filed a joint return (or

be carried forward up to 20 years.

column heading in the spaces

separate return) for some but not all

Only the farming loss portion of the

provided. The column heading now

of the tax years involved in figuring

NOL can be carried back 5 years.

reads “2nd preceding tax year ended

the unused credit carryback, special

12/31/03.”

Example. You operate a farming

rules apply to figuring the carryback.

business and incur an NOL of

See the instructions for Form 3800.

For each carryback year, enter in

$50,000 for 2005. $25,000 of the

the column labeled “Before

NOL is attributable to income and

Line 1c—Net Section

carryback” the amounts for the

deductions of your farming business;

carryback year as shown on your

1256 Contracts Loss

$10,000 is attributable to a fire in your

original or amended return. If the

personal residence (an eligible loss);

An individual can elect to carry back a

amounts were previously adjusted by

and the remaining $15,000 is

net section 1256 contracts loss to

you or the IRS, enter the amounts

attributable to your spouse’s work as

each of the 3 tax years preceding the

after adjustment.

an employee. The $25,000 farming

loss year. An estate or trust is not

Line 10—NOL Deduction

loss is carried back 5 years; the

eligible to make this election. To

$10,000 eligible loss is carried back 3

make the election, check box D at the

After Carryback

years; and the remaining $15,000

top of Form 6781. The amount which

loss is carried back 2 years. Any

Use the following rules to figure the

can be used in any prior tax year

unused portion of this NOL can be

tax years to which you must carry an

cannot exceed the net section 1256

carried forward up to 20 years.

NOL shown on Schedule A, line 25. If

contract gain in that year and cannot

an NOL is not fully absorbed in a year

increase or create an NOL for that

You can elect to treat a farming

to which it is carried, complete

year. Reflect the carryback as a

loss as if it were not a farming loss. If

Schedule B to figure the amount to

reduction to your adjusted gross

you make this election, the loss

carry to the next carryback year.

income in the “After carryback”

carryback period will be 2 years (3

column on line 10. Attach to Form

Note. You may need to use

years to the extent the loss is an

1045 a copy of Form 6781 and

additional Forms 1045 to carry back

eligible loss). To make this election

Schedule D (Form 1040) for the year

an NOL. Complete lines 1 through 9

for 2005, attach to your 2005 income

of the net section 1256 contracts loss

and Schedule A on only one Form

tax return filed by the due date

and an amended Form 6781 and an

1045. Use this Form 1045 for the

(including extensions) a statement

amended Schedule D (Form 1040)

earliest preceding tax years. You

that you are electing to treat any

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Instructions For Form 1045 (Rev. February 2006) - 2005 Page 3

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