Form 1139 (Rev. October 2018) – 2010 Tax Year Checklist
Purpose
Form 1139 allows corporations to request a tentative refund by carrying back net operating losses, net capital losses, or unused general business credits to prior tax years. For the 2010 tax year, the standard carryback rules apply unless the corporation has specific loss types that qualify for extended carryback periods.
You must determine whether your 2010 loss qualifies for special treatment under exceptions for farming losses, qualified disaster losses, qualified GO Zone losses, or specified liability losses.
Step-by-Step Checklist
1. Confirm 2010 Carryback Eligibility and Applicable Rules
Verify that the loss or credit originated in the 2010 tax year. Standard NOLs from 2010 carry back two years to the two preceding tax years. Farming losses, qualified disaster losses, and qualified GO Zone losses carry back five years instead.
Specified liability losses carry back ten years. If you choose to waive the carryback period and carry the loss forward only, document this election in writing and attach it to Form 1139.
2. Identify Reason for Filing on Line 1
Check the appropriate box on line 1 to indicate the type of carryback: line 1(a) for NOL, line 1(b) for net capital loss, or line 1(c) for unused general business credit.
Enter the computed dollar amount for each item and attach detailed schedules that support your calculation. Each carryback type follows distinct rules under the Internal Revenue Code.
3. Report Loss or Credit Year Information on Line 2
Complete the following items on line 2:
- Enter the tax year ended date for 2010.
- Enter the exact date the 2010 tax return was filed.
- Identify the IRS service center where the 2010 return was filed.
- Check the box on line 2d if resubmitting Form 1139 in response to IRS correspondence, and attach a copy of that correspondence.
This information links the application to the source-year return and ensures proper matching for 2010 filings.
4. Address Consolidated Return Status on Line 5a–b
Answer "Yes" on line 5a if the corporation filed or joined a consolidated return for any year to which the 2010 carryback will apply. Provide the tax year ending date, common parent name, and EIN on line 5b.
The IRS requires clear identification of consolidated group membership for all relevant years to prevent duplicate carryback claims. If filing for a short tax year created when the corporation became a qualified new member of a consolidated group, you must answer "Yes" on line 5a and enter the new common parent information on line 5b.
5. Report Form 1138 Status on Line 6a–d
If Form 1138 was filed for 2010, answer "Yes" on line 6a. Enter the extension grant date and Form 1138 filing date.
Report any unpaid tax for which the Form 1138 remains in effect. This step ensures the tentative refund claim does not double-claim relief under both forms.
6. Complete Tax Computation Columns for Each Carryback Year
For each prior tax year receiving the 2010 carryback, fill columns (a) and (b) for "Before carryback" and "After carryback" calculations. Include taxable income, capital loss carrybacks, NOL deductions, income tax, alternative minimum tax, general business credits, and other applicable taxes.
Use the earliest carryback year first and proceed consecutively until the loss is fully absorbed.
Do not include the base erosion minimum tax on line 18, as this tax did not exist in 2010 or any prior carryback years.
7. Distinguish General Business Credits from Other Credits
Report the general business credit on line 20 using Form 3800 components. List other credits separately on line 21, such as credits allowed under prior-year law but not subject to carryback.
Verify which credits are eligible for carryback under applicable law and which are not.
If an NOL carryback or net capital loss carryback eliminates or reduces a general business credit in an earlier tax year, the released general business credit can be carried back one year.
8. Calculate Decrease in Tax on Lines 28–29
Subtract the "After carryback" total tax liability from the "Before carryback" total tax liability to determine the decrease in tax on line 28.
If the application relates to an overpayment claim under section 1341(b)(1), complete line 29 with the overpayment computation. Attach supporting documentation for any claim of right adjustment.
9. Answer Reportable Transaction Question on Line 10
Answer "Yes" on line 10 if any part of the decrease in tax is attributable to a loss or credit arising from a reportable transaction. Attach Form 8886 if required.
Treasury Regulation section 1.6011-4 defines reportable transactions.
10. Verify Petitions in Tax Court on Line 9
Answer "Yes" on line 9 if the corporation has filed a petition in Tax Court for any year to which the 2010 carryback will be applied.
If pending litigation exists, the tentative refund may be affected. Do not file Form 1139 until the Tax Court matter is resolved or suspended.
11. Sign and Date on Officer Signature Line
An authorized officer of the corporation must sign and date the form. Enter the officer's title.
The officer's signature certifies, under penalties of perjury, that the application and all attached schedules are true and correct.
12. File Separately from the 2010 Income Tax Return
Submit Form 1139 as a standalone document. Do not attach it to or file it with Form 1120 or Form 1120-S for 2010. Separate filing avoids processing delays.
Generally, you must file Form 1139 within twelve months of the end of the tax year in which the NOL, net capital loss, unused credit, or claim of right adjustment arose.
Year-Specific 2010 Notes
The base erosion minimum tax did not exist in 2010. This tax was enacted as part of the Tax Cuts and Jobs Act in December 2017 and applies only to tax years beginning after December 31, 2017.
Leave line 18 blank when filing Form 1139 for a 2010 loss year. The extended NOL carryback provisions under the American Recovery and Reinvestment Act and the Worker, Homeownership, and Business Assistance Act of 2009 applied only to losses arising in 2008 or 2009, not 2010.
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.
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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.
