Instructions For Form 1139 - Corporation Application For Tentative Refund

the 90-day period. If the application is

and foreign corporations and for

What To Attach

disallowed in whole or in part, no suit

dividends received on certain

Attach to Form 1139 copies of the

challenging the disallowance may be

preferred stock of a public utility are

following, if applicable, for the year of

brought in any court. But the

computed without regard to the

the loss or credit.

corporation can file a regular claim for

limitation on the aggregate amount of

•

The first two pages of the

credit or refund. See Filing Form

deductions under section 246(b).

corporation’s income tax return.

•

1120X or Other Amended Return

The dividends-paid deduction for

•

All other forms and schedules from

below.

dividends paid on certain preferred

which a carryback results (for

stock of a public utility is computed

example, Schedule D (Form 1120),

Excessive Allowances

without regard to the limitation under

Form 3800, etc.).

Any amount applied, credited, or

section 247(a)(1)(B).

•

All Forms 8886, Reportable

•

refunded based on this application

The domestic production activities

Transaction Disclosure Statement,

that the IRS later determines to be

deduction under section 199 is

attached to the corporation’s tax

excessive may be billed as if it were

generally not allowed. See

return.

due to a math or clerical error on the

Regulations section 1.199-7(c)(2) for

Also attach to Form 1139:

return.

an exception.

•

All carryback year forms and

The carryback period for an NOL

Filing Form 1120X or Other

schedules for which items were

generally is 2 years. Special rules

Amended Return

refigured.

(discussed below) apply to the portion

•

Form 8302, Electronic Deposit of

A corporation can get a refund by

of an NOL attributable to:

Tax Refund of $1 Million or More.

•

filing Form 1120X (or other amended

A specified liability loss;

Electronic deposits can be made only

•

return, such as an amended Form

A farming loss;

for a carryback year for which the

•

1120-PC) instead of Form 1139.

A qualified disaster loss, a qualified

refund is at least $1 million. Attach a

Generally, the corporation must file

recovery assistance loss, a qualified

separate form for each such

an amended return within 3 years

disaster recovery assistance loss, or

carryback year.

after the date the return was due for

a qualified GO Zone loss;

•

the tax year in which an NOL, net

An eligible small business loss;

Processing the Application

•

capital loss, or unused credit arose

An eligible loss; or

•

The IRS will process this application

(or, if later, the date the return for that

An excess interest loss.

within 90 days of the later of:

year was filed).

•

Specified Liability Losses

The date the corporation files the

Corporations must file Form 1120X

complete application, or

Generally, a specified liability loss is

(or other amended return) instead of

•

The last day of the month that

a loss arising from:

Form 1139 to carry back:

includes the due date (including

•

A prior year foreign tax credit

1. Product liability,

extensions) for filing the corporation’s

released due to an NOL or net capital

2. An act (or failure to act) that

income tax return for the year in

loss carryback, or

occurred at least 3 years before the

which the loss or credit arose (or, for

•

A prior year general business credit

beginning of the loss year and

a claim of right adjustment, the date

released because of the release of

resulted in a liability under a federal

of the overpayment under section

the foreign tax credit.

or state law requiring:

1341(b)(1)).

For details, see Rev. Rul. 82-154,

a. Reclamation of land,

The payment of the requested

1982-2 C.B. 394.

b. Decommissioning of a nuclear

refund does not mean the IRS has

power plant (or any unit thereof),

The procedures for processing an

accepted the application as correct. If

c. Dismantling of a drilling

amended return and Form 1139 are

the IRS later determines the claimed

platform,

different. The IRS is not required to

deductions or credits are due to an

d. Remediation of environmental

process an amended return within 90

overstatement of the value of

contamination, or

days. However, if the IRS does not

property, negligence, disregard of

e. Payment under any workers

process it within 6 months from the

rules, or substantial understatement

compensation act.

date a corporation files it, the

of income tax, the corporation may be

corporation can file suit in court. If the

assessed penalties. Interest is also

Any loss from a liability arising

IRS disallows a claim on an amended

charged on any amounts erroneously

from 2a through 2e, above, can be

return and the corporation disagrees

refunded, credited, or applied.

taken into account as a specified

with that determination, the

liability loss only if the corporation

The IRS may need to contact the

corporation must file suit no later than

used an accrual method of

corporation or its authorized

2 years after the date the IRS

accounting throughout the period in

representative for more information.

disallows it.

which the act (or failure to act)

To designate an attorney or

Definitions and Special

occurred. For details, see section

representative, attach Form 2848,

172(f).

Rules

Power of Attorney and Declaration of

Representative, to Form 1139.

To the extent an NOL is a

For corporations, a net operating loss

specified liability loss, the carryback

(NOL) is the excess of the deductions

Disallowance of the

period for that part of the NOL is

allowed over gross income, computed

Application

generally 10 years.

with the following adjustments.

•

An application for a tentative refund is

The NOL deduction for an NOL

However, the corporation can

not treated as a claim for credit or

carryback or carryover from another

make an irrevocable election to figure

refund. It may be disallowed if there

year is not allowed.

the carryback period for a specified

•

are any material omissions or math

The dividends-received deductions

liability loss without regard to the

errors that are not corrected within

for dividends received from domestic

special 10-year carryback rule. To

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Instructions For Form 1139 - Corporation Application For Tentative Refund - 2009 Page 2

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