Form 1045 (2011) Tentative Refund Application Checklist
Purpose and Scope
Form 1045 permits individuals, estates, and trusts to apply for a quick refund by carrying back a 2011 net operating loss, unused general business credit, or net section 1256 contracts loss to prior years. Schedule A incorporates the domestic production activities deduction calculation on line 23, reflecting current year IRC Section 199 provisions applicable to 2011 tax year carrybacks.
You must file Form 1045 within one year after the end of the year in which the NOL, unused credit, net section 1256 contracts loss, or claim of right adjustment arose. The IRS will process your application within 90 days from the later of the filing date or the last day of the month that includes the due date for filing your 2011 income tax return.
Eligibility and Filing Requirements
Form 1045 is available only to individuals, estates, and trusts filing for the 2011 tax year. Corporations, partnerships, and S corporations cannot use this form. Qualification requires that you filed Form 1040, Form 1040NR, or Form 1041 for 2011, and your filing status and SSN or EIN must match exactly across all documents.
Carryback Items and Documentation
Determine which item you are carrying back from the following:
- NOL from Schedule A line 25.
- Unused general business credit.
- Net section 1256 contracts loss.
You must attach completed Schedule A if carrying back an NOL or net section 1256 contracts loss. Leave line 1b blank if no general business credit exists for the 2011 tax year.
This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
Taxpayer Information Block
Required Information
- Enter your name, address, and SSN or EIN if you represent an estate or trust.
- Record spouse's SSN only if married filing jointly in 2011.
- Provide exact 2011 tax year dates on line 2a, such as January 1, 2011, through December 31, 2011, or applicable fiscal year dates.
- Enter the date you filed your 2011 return on line 2b.
Prior Year Filing Status Disclosure
On line 4, list each carryback year if you filed joint returns in some years but separate returns in others. Mark each year with "J" for joint or "S" for separate to ensure proper NOL allocation and credit limitation calculations across multiple prior-year returns.
Reportable Transaction Disclosure
Answer line 8 by marking "Yes" if the NOL, section 1256 loss, or credit results from a reportable transaction that requires disclosure on Form 8886. This requirement applies to any listed transaction or transaction of interest under Treasury regulations. You must attach Form 8886 if you mark "Yes" on line 8.
Foreign Tax Credit Impact
On line 9, answer "Yes" if carrying back an NOL or net section 1256 contracts loss caused the release or limitation of foreign tax credits or credits dependent on foreign tax credit ordering. Attach a detailed explanation if you select "Yes" to show the timing and effect of credit recapture for each affected year.
Three-Column Computation Section
Complete the three-column computation section for lines 10 through 27 for each affected prior year. Work from left to right and enter NOL deduction after carryback on line 10, recalculate AGI on line 11, enter deductions on line 12, calculate taxable income on line 15, calculate income tax on line 16, calculate AMT on line 17, enter credits on lines 19 through 21, and calculate total tax on line 25. Show both "Before carryback" and "After carryback" columns, with line 27 yielding the decrease in tax for each prior year.
This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
Schedule A NOL Computation
Complete Schedule A on page 2 if line 1a or line 1c contains an amount. Line 23 of Schedule A requires entry of the 2011 domestic production activities deduction from Form 1040 line 35, Form 1040NR line 34, or Form 1041 line 15a for estates and trusts. This deduction affects NOL calculation under current law and must be included in the NOL carryback computation for 2011 returns.
Section 1202 Exclusion Adjustments
Enter any qualified small business stock exclusion claimed on the 2011 Form 1040 Schedule D as a positive number on Schedule A line 17. Lines 18, 20, and 21 refigure capital loss limitations to prevent double-deduction of excluded gains. Only actual realized losses reduce taxable income in the carryback years under these adjustment calculations.
Itemized Deduction Refiguring
Complete lines 14 through 38 on page 3 only if you itemized deductions in the carryback year and line 3, 4, or 5 exceeds zero. Recalculate the following items using modified AGI after the NOL carryback adjustment: medical expenses using the 7.5 percent AGI floor for 2011, mortgage insurance premiums, charitable contributions, casualty and theft losses, and miscellaneous itemized deductions. Use your refigured adjusted gross income from Form 1045 line 11, using the "After carryback" column for all percentage-based calculations.
Modified Taxable Income Limitation
On page 3, line 9, combine adjusted taxable income lines 2 through 8 to determine if NOL can fully offset the prior year income. No additional loss carryover is available for that year if line 9 equals zero or less after applying the NOL. Any excess moves to line 10 as NOL carryover if multiple carryback years remain available for absorption.
Submission Requirements
Filing Instructions
- You and your spouse must sign and date the form under penalties of perjury if filing jointly.
- A paid preparer who prepared or assisted in preparing this form must sign, enter PTIN, and provide firm information.
- Retain a copy for your records before mailing the original.
- File Form 1045 in a separate envelope and do not attach it to your 2011 income tax return.
- File your 2011 income tax return no later than the date you file Form 1045.
Carryback Period Rules for 2011
General NOL Carryback
You must carry back the entire NOL to the two tax years before the loss year. Any loss not used in the second preceding year carries to the first preceding year. Any loss not applied in the two preceding years can be carried forward up to 20 years.
Special Carryback Periods
- Farming losses carry back five years to the fifth tax year before the loss, then consecutively forward through the first preceding year.
- Eligible losses from casualty, theft, or federally declared disasters for qualified small businesses carry back three years.
- Qualified disaster losses, GO Zone losses, and disaster recovery assistance losses carry back five years.
- Specified liability losses carry back ten years to the tenth tax year before the loss.
Alternative Minimum Tax Considerations
The carryback of an NOL or net section 1256 contracts loss may create alternative minimum tax liability for earlier years. The 90 percent limit on the alternative tax net operating loss deduction does not apply to the portion attributable to qualified disaster losses, qualified GO Zone losses, or qualified disaster recovery assistance losses.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
