Form 1139 (Rev. November 2014) — 2014 Tax Year Checklist
Purpose and Application
Form 1139 permits corporations other than S corporations to request a tentative refund based on carryback of net operating loss, capital loss, unused general business credit, or overpayments due to claim of right adjustments under section 1341(b)(1). The IRS processes applications within 90 days of the later of the complete application filing date or the last day of the month that includes the return due date for the lost year.
Filing Requirements and Deadlines
You must file Form 1139 separately from your income tax return and retain a copy for your records per the 2014 instructions. Corporations must file their income tax return for the tax year no later than the date they file Form 1139.
Generally, filing Form 1139 must occur within 12 months of the end of the tax year in which an NOL, net capital loss, unused credit, or claim of right adjustment arose. If you filed Form 1138 seeking an extension of time for payment of taxes, an additional extension becomes available by filing Form 1139 by the last day of the month that includes the return due date from which the NOL carryback arose.
Essential Form Components
Complete the following sections with accurate information:
- Enter your corporation name, employer identification number, incorporation date, and complete mailing address with ZIP code matching USPS standards.
- Identify the reason for filing on line 1 by marking NOL (line 1a), capital loss (line 1b), unused general business credit (line 1c), or other overpayment (line 1d).
- Complete line 2 with the ending date and filing date of the return for the year the loss, credit, or overpayment was claimed.
- Identify the service center where that return was filed as required by the 2014 processing instructions.
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.
Foreign Tax Credit Considerations
Answer line 4 regarding foreign tax credit release with careful attention to 2014 requirements. If you answer "Yes," you must file an amended return to carry back released credits rather than using Form 1139. The 2014 instructions emphasize this requirement because of interaction with consolidated return rules.
Foreign taxes taken as a credit in a prior year can be reduced to zero by carryback of an NOL or net capital loss on Form 1139. A corporation must file Form 1120X or other amended return instead of Form 1139 to carry back a prior year foreign tax credit released due to an NOL or net capital loss carryback.
Consolidated Return Status
Answer lines 5a and 5b regarding consolidated return status during any carryback year or if your corporation joined a consolidated group in 2014. If you are filing for a short tax year created when your corporation became a qualified new member of a consolidated group, answer "Yes" on line 5a and enter the tax year ending date, name, and EIN of the new common parent on line 5b.
Form 1138 Extension Information
Complete lines 6a through 6d if you filed Form 1138 requesting an extension of time for payment of tax. Enter the date the extension was granted and the amount of unpaid tax covered by the extension.
The 2014 instructions specify coordination with tentative refund processing for corporations that received Form 1138 extensions. This information allows the IRS to properly process your tentative refund in relation to previously granted payment extensions.
Tax Computation Section
Complete lines 11 through 27 for computation of decrease in tax for up to three preceding tax years:
- Enter taxable income before carryback in columns (a), (c), and (e) from your original or amended return.
- Enter capital loss carryback on line 12 as a positive number, not exceeding capital gain net income.
- Enter NOL deduction on line 14 according to the carryback period determined under special rules.
- Calculate refigured income tax on line 16, taking into account section 1561 limitations.
- Refigure the alternative minimum tax on line 17 by completing and attaching Form 4626 for the appropriate year.
- Enter corrected general business credits on line 19, attaching all applicable forms used to redetermine the credit.
- Include other credits, such as foreign tax credit on line 20 with attached identifying statement.
- Calculate personal holding company tax on line 22 if applicable to the carryback year.
- Refigure other taxes on line 24, identifying all taxes on an attached statement.
- Skip lines 11 through 15 and proceed directly to line 16 if you are claiming only unused general business credit carryback on line 1c.
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.
Reportable Transaction Disclosure
Answer line 10 regarding whether any decrease in tax results from a reportable transaction. If any decrease in tax results from a reportable transaction, you must attach Form 8886 (Reportable Transaction Disclosure Statement) per the 2014 disclosure rules.
The requirement applies to any loss, credit, or overpayment claimed on Form 1139 that stems from a transaction required to be disclosed under section 6011. This represents continued emphasis on reportable transaction disclosure compliance in the 2014 tax year.
Tax Court Litigation Restriction
Verify that no part of your application relates to Tax Court litigation for the carryback years per line 9. If litigation is pending for any carryback year, do not file Form 1139 until the litigation resolves per the 2014 instructions. The IRS cannot process tentative refund applications that involve years currently under Tax Court review.
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.
Claim of Right Adjustment
For a tentative refund based on an overpayment of tax under section 1341(b)(1), enter the overpayment on line 28. Attach a computation showing the information required by Regulations section 5.6411-1(d). This provision allows corporations to claim overpayment based on the restoration of amounts previously included in income. The computation must be separate from NOL or credit carryback calculations.
Required Attachments
Attach copies of the following documents for the year of the loss or credit:
- The first two pages of your corporation's income tax return.
- All forms and schedules from which a carryback results, including Schedule D (Form 1120), Form 3800, or other applicable credit forms.
- All Forms 8886 (Reportable Transaction Disclosure Statement) are attached to your tax return.
- Any applicable election statements required by the instructions.
- All carryback year forms and schedules for which items were refigured.
- Form 8302 (Electronic Deposit of Tax Refund) if the refund for any carryback year is at least $1 million.
Signature and Preparer Requirements
A corporate officer must sign and date the application under penalties of perjury as required by the 2014 signature rules. If you use a paid preparer, include the preparer's name, signature, date, preparer tax identification number, and firm information in the Paid Preparer Use Only section per 2014 preparer identification rules.
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.
