Instructions For Form 1139 - Corporation Application For Tentative Refund (Page 2 of 5) in pdf

charged on any amounts erroneously

date a corporation files it, the

b. Decommissioning of a nuclear

refunded, credited, or applied.

corporation can file suit in court. If the

power plant (or any unit thereof),

IRS disallows a claim on an amended

c. Dismantling of a drilling

The IRS may need to contact the

return and the corporation disagrees

platform,

corporation or its authorized

with that determination, the

representative for more information.

d. Remediation of environmental

corporation must file suit no later than

To designate an attorney or

contamination, or

2 years after the date the IRS

representative, attach Form 2848,

e. Payment under any workers

disallows it.

Power of Attorney and Declaration of

compensation act.

Representative, to Form 1139.

Definitions and Special Rules

Any loss from a liability arising from

Disallowance of the Application

Net Operating Loss (NOL)

2a through 2e, above, can be taken

An application for a tentative refund is

For corporations, an NOL is the

into account as a specified liability

not treated as a claim for credit or

excess of the deductions allowed over

loss only if the corporation used an

refund. It may be disallowed if there

gross income, computed with the

accrual method of accounting

are any material omissions or math

following adjustments.

throughout the period in which the act

errors that are not corrected within the

The NOL deduction for an NOL

(or failure to act) occurred. For details,

90-day period. If the application is

carryback or carryover from another

see section 172(f).

disallowed in whole or in part, no suit

year is not allowed.

challenging the disallowance may be

The dividends-received deductions

To the extent an NOL is a specified

brought in any court. But the

for dividends received from domestic

liability loss, the carryback period for

corporation can file a regular claim for

and foreign corporations and for

that part of the NOL is generally 10

credit or refund. See Filing Form

dividends received on certain

years. Any such loss that is not

1120X or Other Amended Return

preferred stock of a public utility are

applied in the 10 preceding years can

below.

computed without regard to the

be carried forward up to 20 years.

limitation on the aggregate amount of

Excessive Allowances

However, the corporation can

deductions under section 246(b).

Any amount applied, credited, or

make an irrevocable election to figure

The dividends-paid deduction for

refunded based on this application

the carryback period for a specified

dividends paid on certain preferred

that the IRS later determines to be

liability loss without regard to the

stock of a public utility is computed

excessive may be billed as if it were

special 10-year carryback rule. To

without regard to the limitation under

due to a math or clerical error on the

make the election, attach to the

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

return.

corporation's timely filed tax return for

The domestic production activities

the loss year a statement that the

Filing Form 1120X or Other

deduction under section 199 is

corporation is electing to have the

generally not allowed. See

Amended Return

carryback period for the NOL under

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

A corporation can get a refund by

section 172(b)(1)(C) determined

an exception.

filing Form 1120X (or other amended

without regard to the special 10-year

return, such as an amended Form

carryback rule. If the corporation

The carryback period for an NOL

1120-PC) instead of Form 1139.

timely filed its tax return without

generally is 2 years. Any loss not

Generally, the corporation must file an

making the election, it can make the

applied in the preceding years can be

amended return within 3 years after

election on an amended return filed

carried forward up to 20 years.

the date the return was due for the tax

within 6 months of the due date of the

year in which an NOL, net capital loss,

Special rules (discussed below)

return (excluding extensions). Attach

or unused credit arose (or, if later, the

apply to the portion of an NOL

the election to the amended return

date the return for that year was filed).

attributable to:

and write “Filed pursuant to section

Corporations must file Form 1120X

301.9100-2” on the election

A specified liability loss;

(or other amended return) instead of

statement.

A farming loss;

Form 1139 to carry back:

A qualified disaster loss or a

A prior year minimum tax credit

Farming Loss

qualified GO Zone loss;

released due to an NOL or net capital

An eligible loss; or

A farming loss is the smaller of:

loss carryback,

An excess interest loss.

1. The amount that would be the

A prior year foreign tax credit

NOL for the tax year if only income

released due to an NOL or net capital

Specified Liability Losses

and deductions attributable to farming

loss carryback, or

Generally, a specified liability loss is a

businesses (as defined in section

A prior year general business credit

loss arising from:

263A(e)(4)) were taken into account,

released because of the release of the

1. Product liability,

foreign tax credit.

2. The NOL for the tax year.

2. An act (or failure to act) that

The procedures for processing an

occurred at least 3 years before the

amended return and Form 1139 are

To the extent the NOL is a farming

beginning of the loss year and

different. The IRS is not required to

loss, the carryback period is 5 years.

resulted in a liability under a federal or

process an amended return within 90

Any such loss not applied in the 5

state law requiring:

days. However, if the IRS does not

preceding years can be carried

process it within 6 months from the

a. Reclamation of land,

forward up to 20 years.

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

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