Form Ia 1139 - Application For Refund Due To The Carryback Of Losses

IA 1139 INSTRUCTIONS

1. Net Income: Iowa income as last computed, after additions

and reductions on line 8 of the IA 1120 or IA 1120A.

Include adjustments to federal domestic production

All amounts should be in whole dollars

activities.

NOTE: Farmers should use form IA 1139

2. Iowa Capital Loss: Amount of loss from federal return or

Farm to carryback Iowa Net Operating

refund claim.

Losses.

4. 50 percent Federal Refund from Capital Loss: (accrual

basis only) 50 percent of the amount from any applicable

General Instructions

federal claim. If refund is due to both a capital loss and a

Form IA 1139 can be used only for the carryback of an Iowa

net operating loss, compute the amount attributable to the

capital loss, an Iowa net operating loss or an Iowa alternative

capital loss in the following manner: federal capital loss ÷

minimum tax net operating loss. If any other changes are

(capital loss + net operating loss) x federal refund x 50

involved, form IA 1120X must be filed.

percent. This line does not apply to IA 1120F.

Carryback claims must be filed within three years of the due

6. Nonbusiness Income: Amount from line 9 IA 1120, or from

date of the return producing the net operating loss or capital

IA 1120F and/or schedules, or as last computed.

loss. Attach copies of page one of your Iowa return for all

7. Income Subject to Apportionment: Subtract line 6 from line

periods involved with this claim including the loss year and any

federal claims involved (i.e. 1139 or 1120X). Include

8. Iowa Percentage: Amount from line 11 IA 1120 or as last

supporting documentation for a capital loss or alternative

minimum tax loss (i.e. both federal and Iowa alternative

computed. For IA 1120A enter 100%.

minimum tax schedules for the loss year and carryback years).

9. Income Apportioned to Iowa: Multiply line 7 by line 8.

Iowa did not adopt the 5-year carryback provision for net

10. Iowa Nonbusiness Income: Amount from line 13 IA 1120,

operating losses incurred in 2001 and 2002 relating to the

as last computed, or from IA 1120F and/or schedules.

Federal Job Creation and Workers Assistance Act of 2002.

11. Income Before Net Operating Loss: Add lines 9 and 10.

For tax years beginning after August 5, 1997, an Iowa net

12. Iowa Net Operating Loss Carryforward: Amount from line

operating loss may be carried back two tax periods and carried

15 IA 1120, or line 9 IA 1120A, as last computed, or from

forward 20 tax periods. Losses resulting from a casualty or

IA 1120F and/or schedules.

theft loss or losses attributable to a presidentially-declared

disaster area can still be carried back three years.

13. Iowa Net Operating Loss: “As last reported” - loss

previously carried back. “After carryback” - current period

Specific Instructions

net operating loss plus previous loss.

(On the return, references to line numbers are bracketed.)

14. Income Subject to Tax: Subtract lines 12 and 13 from line

11.

Corporation name and address and Federal T.I.N.: Check box if

different than on returns as filed.

15. Computed Tax: Multiply line 14 by the following:

Tax Type: Check the appropriate box.

Corporation Tax

If Line 14 is:

Loss Information: Check the appropriate box and provide the

Under $25,000 .................. 6%

amount of Iowa loss. Show the remaining loss to be carried

$25,000 to $100,000 ........ 8% minus $500

forward after this carryback. Indicate whether any year

$100,000 to $250,000 ...... 10% minus $2500

involved in this claim has been adjusted by federal audit. If

Over $250,000 .................. 12% minus $7500

yes, include a copy of the federal audit.

Franchise Tax on Financial Institutions

NOTE: In computing the Iowa net operating loss carryback for

Total income subject to tax: 5%

accrual basis tax returns, the net operating loss year should be

16. Minimum Tax: Amount from IA 4626, from IA 4626F or as

reduced by 50 percent of the federal tax refunds accruing to the

last computed. If the amount of minimum tax or minimum

loss year. If you are using filing status 2 or 3, the federal refund

tax credit is changed, the original computation and the

is computed using the “Loss Producers” formula set forth on

revised computation must be attached.

Schedule H, Computation of Federal Tax Refund/ Deduction.

Even though the federal rule on state refunds has changed,

17. Total Tax Liability: Add lines 15 and 16.

Iowa is not changing its position on the accrual of federal

18. Recomputed Tax Liability: Amount from line 17 “after

refunds. We will still require the federal refund to be accrued to

carryback.”

the Iowa loss year return.

Preparer’s ID No: Enter the preparer’s SSN, FEIN, or PTIN.

As Last Reported On: The figures used should be from the last

form filed (i.e. IA 1120, IA 1120A, IA 1120X or IA 1120F,

Mail completed form with applicable attachments to:

1139 claim for refund, amended return or last audit completed).

Examination Section

Provide the form number of the last form filed or the date of

Iowa Department of Revenue

the last Iowa audit.

PO Box 10456

Note: Lines 1 through 13 do not need to be completed if the

Des Moines IA 50306-0456

only change is an alternative minimum tax loss.

Questions? Call: 515/281-3114

(Des Moines, out of state) or

1-800-367-3388

E-mail:

(Iowa, Omaha, Rock Island/Moline only)

idr@iowa.gov

42-026b (10/15/08)

Form Ia 1139 - Application For Refund Due To The Carryback Of Losses - 2008 Page 2

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