Form 1139 (Rev. October 2018) — 2013 Tax Year Checklist
Purpose and Scope
Form 1139 permits corporations to apply for a tentative refund based on a net operating loss, net capital loss, unused general business credit, or section 1341(b)(1) overpayment arising in a 2013 tax year. The October 2018 revision added line 18 to address base erosion minimum tax reporting for corporations subject to BEAT in taxable years beginning after December 31, 2017. This form provides an expedited refund process with a 90-day IRS processing requirement, distinguishing it from the standard amended return procedure using Form 1120-X.
Filing Requirements for 2013 Loss Carrybacks
You must file Form 1139 within 12 months of the end of the tax year in which the NOL, net capital loss, unused credit, or claim of right adjustment arose. Corporations must file their income tax return for the loss year no later than the date they file Form 1139.
You must attach copies of the first two pages of the 2013 corporate return, all relevant schedules creating the carryback, and any required Forms 8886 for reportable transactions. IRS processing of your application occurs within 90 days of the later of the complete application filing date or the last day of the month containing the return's due date.
Carryback Period Rules
For a 2013 NOL, the standard carryback period is two years (2011 and 2012 tax years) under IRC section 172(b). The standard two-year carryback applies unless the loss qualifies as an eligible loss (three-year carryback), farming loss (five-year carryback), or specified liability loss (ten-year carryback).
You can elect to waive the entire carryback period and carry the NOL forward only by attaching a statement to your timely filed 2013 return. The carryforward period extends up to 20 years following the NOL year if carryback capacity remains unused.
Consolidated Return Considerations
You must complete lines 3 and 5a through 5b if the 2013 loss was incurred while the corporation was part of a consolidated group or if the corporation subsequently joined a consolidated group.
Provide the common parent's employer identification number and tax year-end date as part of this disclosure.
The IRS will send refunds for carryback years in which the corporation filed consolidated returns directly to the common parent or designated agent. Consolidated carrybacks are subject to separate limitations under applicable Treasury regulations.
Key Regulatory Distinctions
● Answer line 4 regarding foreign tax credit release. Corporations must file Form 1120-X instead of Form 1139 to carry back released foreign tax credits resulting from NOL or net capital loss carrybacks.
● Disclose on line 10 whether any decrease in tax is attributable to a reportable transaction requiring Form 8886 attachment under Treasury Regulation section 1.6011-4.
● Enter on line 6 any Form 1138 extension information for deferred tax liability, including the extension expiration date and unpaid tax amount.
● Corporations carrying back losses to years with section 965(a) inclusions must file Form 1120-X rather than Form 1139 for those carryback years.
Tax Computation for Carryback Years
Complete the Computation of Decrease in Tax section (lines 11 through 28) by calculating taxable income before and after the 2013 NOL or capital loss carryback for each applicable carryback year. For 2013 loss carrybacks to 2011 and 2012, you must recalculate income tax using the federal corporate rate of 35 percent that applied during those years.
The corporate alternative minimum tax existed in 2011, 2012, and 2013 at a rate of 20 percent of alternative minimum taxable income. You must refigure general business credits from Form 3800 and other allowable credits for each carryback year, confirming these credits were properly limited under the rules applicable to those years.
Section 1341 Overpayments
Line 29 accommodates tentative refund claims based on an overpayment of tax under section 1341(b)(1) when a carryback results in an overpayment due to a claim-of-right adjustment. You must attach a computation showing the information required by Treasury Regulation section 5.6411-1(d).
The October 2018 instructions clarified that this election remains available for 2013 losses if the adjustment meets statutory conditions. This provision applies when income inclusion in an earlier year created a tax liability that a subsequent repayment or adjustment entitles you to recover.
Credit Carryback Procedures
Enter unused general business credit carrybacks on line 20 after refiguring the credit for each carryback year using Form 3800 or the applicable credit form. Except as provided in section 39(d), an unused general business credit can be carried back one year.
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 additional year. You must attach all applicable forms used to redetermine the general business credit for proper documentation.
Signature and Filing Instructions
A corporate officer must sign Form 1139 under penalties of perjury in the signature block, providing their title and dating the form as of the filing date rather than the 2013 tax year end.
You must file the form separately from the corporation’s current-year return at the Internal Revenue Service Center where the corporation files its income tax return.
The IRS may disallow applications containing material omissions or math errors not corrected within the 90-day processing period. Any amount applied, credited, or refunded that the IRS later determines to be excessive may be billed as if it were due to a math or clerical error on the return.
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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.
