Form 1139 (Rev. October 2018) — Tax Year 2023 Checklist
Purpose
Form 1139 permits corporations to request a tentative refund for specific carrybacks or claim of right adjustments before filing an amended Form 1120. The IRS issued the December 2025 revision for use with 2025 and subsequent tax years until a superseding revision appears.
Corporations other than S corporations use this form to apply for quick refunds from the carryback of net operating losses, net capital losses, unused general business credits, or overpayments under section 1341(b)(1). The December 2025 revision replaces all prior versions of the form and its instructions.
Carryback Eligibility for 2023 Net Operating Losses
The Tax Cuts and Jobs Act eliminated net operating loss carrybacks for most corporations effective for losses arising in tax years beginning after December 31, 2017. Regular corporate net operating losses from 2023 cannot be carried back to prior years. Only two categories of net operating losses arising in 2023 qualify for carryback treatment under current law.
- Farming losses may be carried back two years under IRC section 172.
- Losses of insurance companies other than life insurance companies may be carried back two years.
Corporations must verify their loss meets one of these narrow exceptions before filing Form 1139 for a 2023 net operating loss carryback.
A farming loss equals the smaller of the net operating loss that would exist if only income and deductions from farming businesses were considered, or the total net operating loss for the tax year. Insurance companies other than life insurance companies can carry back their net operating losses for two years and carry forward unused amounts up to twenty years.
Corporations that do not qualify under either exception must carry their 2023 net operating losses forward indefinitely to future tax years. The carryforward is subject to the 80 percent taxable income limitation for tax years beginning after December 31, 2020.
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.
Completion Steps
Complete Line 1 Reason(s) for Filing
- Box 1a applies to net operating loss carrybacks only if the 2023 loss qualifies as a farming loss or insurance company loss.
- Box 1b applies to net capital loss carrybacks.
- Box 1c applies to unused general business credit carrybacks.
- Box 1d applies to claim of right adjustments under section 1341(b)(1).
- The corresponding dollar amount must appear for each applicable carryback item.
- All required supporting schedules and computations showing how the carryback amount was calculated must be attached.
- Multiple carryback items require completion of all applicable boxes with documentation.
Identify Carryback Years on Line 2
- The tax year ended date and filing date for the 2023 return that generated the loss or credit must appear on this line.
- The IRS service center where the 2023 return was filed must be listed.
- The information must match the filing confirmation or postmark from the 2023 filing.
- Box 2d requires checking and attaching IRS correspondence if the form is resubmitted in response to an IRS request.
Answer Line 4 — Foreign Tax Credit Release
- The corporation must determine whether the 2023 loss triggered the release of foreign tax credits under IRC section 904(c).
- Form 1120-X replaces Form 1139 for carrying back any prior year foreign tax credit released due to a net operating loss or net capital loss carryback.
- Line 4 requires "Yes" if a foreign tax credit release occurred, and amended returns for affected carryback years must be prepared.
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.
Complete Line 5a and 5b — Consolidated Return Status
- This line requires disclosure of whether a consolidated return was filed in 2023 or any carryback year.
- The corporation must indicate whether it joined a consolidated group.
- The common parent name, employer identification number, and tax year ending date must be provided if line 5a is answered "Yes."
- Documentation showing the consolidated group structure and membership status must be attached.
- Line 5b requires new common parent information if the corporation became a qualified new member during a short tax year.
Address Line 6 — Form 1138 Extension
- Line 6 requires "Yes" if Form 1138 was filed for the 2023 return.
- Line 6b requires the extension date granted.
- Line 6c requires the Form 1138 filing date.
- Line 6d requires any unpaid tax amount.
- The IRS may delay processing if extension taxes remain unpaid.
Report Line 9 — Tax Court Petition Status
- This line requires disclosure of whether a Tax Court petition was filed for any carryback year.
- A copy of the petition notice must be attached if the answer is "Yes."
- The docket number and filing date must be provided.
- Processing may be suspended pending Tax Court resolution.
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.
Complete Computation of Decrease in Tax (Lines 11–28)
- Taxable income before carryback must appear in columns (a), (c), or (e) for each carryback year.
- The capital loss carryback appears on line 12, and the net operating loss deduction appears on line 14 using applicable ordering rules.
- Taxable income after carryback must be recalculated, and revised amounts must appear on line 15 in columns (b), (d), or (f).
- Total tax liability must be refigured, including income tax on line 16, base erosion minimum tax on line 18, general business credit on line 20, and other applicable credits and taxes.
- The amount on line 28 represents the tentative refund claimed.
Net Operating Loss Deduction Limitation
For tax years beginning after December 31, 2020, the net operating loss deduction cannot exceed the aggregate of net operating losses arising before January 1, 2018, plus the lesser of net operating losses arising after December 31, 2017, or 80 percent of taxable income computed without the net operating loss deduction, section 199A deduction, or section 250 deduction.
This limitation applies when using net operating loss carryforwards in carryback years that begin after 2020. Insurance companies other than life insurance companies are exempt from the 80 percent taxable income limitation. You must complete the worksheet in the Form 1139 instructions to calculate the allowable deduction for each carryback year.
General Business Credit Carryback Rules
Unused general business credits from 2023 may be carried back one year under IRC section 39(a), except for credits with longer carryback periods specified in the Internal Revenue Code.
- The specific credit type and applicable carryback period must be verified before filing.
- Extended carryback periods may apply to research credits, disabled access credits, or other specialized credits.
- The general business credit for the carryback year must be refigured on Form 3800 or the applicable credit form.
- The full computation must be attached to Form 1139.
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.
Base Erosion Minimum Tax Considerations
Form 1139 instructions require the inclusion of base erosion minimum tax on line 18 if the corporation is a C corporation with average annual gross receipts of $500 million or more for the three preceding tax years. The base erosion minimum tax under IRC section 59A applies to corporations with deductions paid or accrued to foreign related parties exceeding 3 percent of total deductions, or 2 percent for certain banks and registered securities dealers.
- Form 8991 must be attached if the base erosion minimum tax applies.
- The base erosion minimum tax must be recalculated after applying the net operating loss or credit carryback.
- The tax for carryback years shown in columns (b), (d), and (f) must be refigured.
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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.
