Corporation Application for Tentative Refund

APPROVED FOR TPCC CHAIRPERSON "AS IS"
JOHNNY CERVANTES
MARCH 16, 2009
Userid: SD_GF2LB

PAGER/SGML
Page 1 of 6

Fileid:

DTD INSTR04

Leadpct: 0%

Pt. size: 10

C:\Documents and Settings\GF2LB\Desktop\1139\08I1139 031309.SGM

Instructions for Form 1139

❏

Draft

❏

Ok to Print

(Init. & date)

9:02 - 16-MAR-2009

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Department of the Treasury
Internal Revenue Service

Instructions for Form 1139
(Rev. March 2009)
(Use with the August 2006 revision of Form 1139.)
Corporation Application for Tentative Refund
Section references are to the Internal
Revenue Code unless otherwise noted.

What’s New
5-year carryback of 2008 net
operating losses (NOLs) for
eligible small businesses. An
eligible small business can elect a 3,
4, or 5-year carryback period for
certain 2008 net operating losses
(NOLs). Other special rules also
apply. See Eligible Small Business
Loss on page 4.
Tax relief for disaster area losses.
A 5-year carryback period applies to
the portion of an NOL that is:
• A qualified disaster loss attributable
to a disaster that is in an area
declared by the President to be
eligible for federal disaster
assistance,
• A qualified recovery assistance
loss attributable to losses in the
Kansas disaster area, or
• A qualified disaster recovery
assistance loss attributable to losses
in the Midwestern disaster areas.
See the instructions for each
applicable loss under Definitions and
Special Rules.
Alternative minimum tax net
operating loss deduction
(ATNOLD). The 90% limit on the
ATNOLD does not apply to the
portion of the ATNOLD attributable to
a qualified disaster loss, a qualified
recovery assistance loss, and a
qualified disaster recovery assistance
loss. See page 5 of the instructions.
Qualified GO Zone losses. The
definition of a qualified GO Zone loss
no longer includes certain deductions.
See page 3.

General Instructions
Purpose of Form
A corporation (other than an S
corporation) files Form 1139 to apply
for a quick refund of taxes from:
• The carryback of an NOL,
• The carryback of a net capital loss,
• The carryback of an unused
general business credit, or

• An overpayment of tax due to a
claim of right adjustment under
section 1341(b)(1).

Waiving the NOL carryback period.
A corporation can elect to carry an
NOL forward instead of first carrying it
back. Make this election by attaching
a statement to a timely filed tax return
(including extensions) for the tax year
of the NOL indicating that the
corporation is electing to relinquish
the entire carryback period under
section 172(b)(3) for any NOLs
incurred in that tax year.
If the corporation timely filed its
return for the loss year without
making the election, it can make the
election on an amended return filed
within 6 months of the due date of the
loss year return (excluding
extensions). Attach the election to the
amended return and write “Filed
pursuant to section 301.9100-2” on
the election statement. Once made,
the election is irrevocable, except as
explained in the next paragraph.
Revoking the election to waive
the carryback period. The
corporation can revoke an election
under section 172(b)(3) to waive the
carryback period for an NOL arising
in a tax year ending before February
17, 2009, and make the election
under section 172(b)(1)(H) to use a 3,
4, or 5-year carryback period for an
eligible small business loss. To
revoke the election, file Form 1139
(or an amended return) for the
earliest tax year to which the
corporation is carrying back its 2008
NOL. Enter “2008 NOL Carryback
Election and Revocation of NOL
Carryback Waiver Pursuant to Rev.
Proc. 2009-19” across the top of the
Form 1139 (or an amended return). If
filing an amended return, see Filing
Form 1120X or Other Amended
Return on page 2.

When To File
Generally, the corporation must file
Form 1139 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.
Cat. No. 20631X

To elect a 3, 4, or 5-year carryback
for an eligible small business loss
arising in a tax year ending before
February 17, 2009, the corporation
must file Form 1139 by the later of
the regular due date or April 17,
2009.
The corporation must file its
income tax return for the tax
CAUTION year no later than the date it
files Form 1139.

!

If the corporation filed Form 1138,
Extension of Time for Payment of
Taxes by a Corporation Expecting a
Net Operating Loss Carryback, it can
get an additional extension of time to
pay. To do so, file Form 1139 by the
last day of the month that includes
the due date (including extensions)
for filing the return for the tax year
from which the NOL carryback arose.
Qualified new members of a
consolidated group. The general
rule above applies to the time for
filing of Form 1139 by a consolidated
group. However, for this purpose, a
separate return year of a qualified
new member (see below) that ends
on the date of joining the new group
is treated as ending on the same date
as the end of the tax year of the
consolidated group that includes the
date of the end of the separate return
year. If this special treatment applies,
see the instructions for line 5 on page
5. A new member of a consolidated
group is a qualified new member if
immediately prior to becoming a new
member either:
• It was the common parent of a
consolidated group, or
• It was not required to join in the
filing of a consolidated return.

Where To File
File Form 1139 with the Internal
Revenue Service Center where the
corporation files its income tax return.

!

CAUTION

Do not file Form 1139 with the
corporation’s income tax
return.

Page 2 of 6

Instructions for Form 1139

9:02 - 16-MAR-2009

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

What To Attach
Attach to Form 1139 copies of the
following, if applicable, for the year of
the loss or credit.
• The first two pages of the
corporation’s income tax return.
• All other forms and schedules from
which a carryback results (for
example, Schedule D (Form 1120),
Form 3800, etc.).
• All Forms 8886, Reportable
Transaction Disclosure Statement,
attached to the corporation’s tax
return.
Also attach to Form 1139:
• All carryback year forms and
schedules for which items were
refigured.
• Form 8302, Electronic Deposit of
Tax Refund of $1 Million or More.
Electronic deposits can be made only
for a carryback year for which the
refund is at least $1 million. Attach a
separate form for each such
carryback year.

Processing the Application
The IRS will process this application
within 90 days of the later of:
• The date the corporation files the
complete application, or
• The last day of the month that
includes the due date (including
extensions) for filing the corporation’s
income tax return for the year in
which the loss or credit arose (or, for
a claim of right adjustment, the date
of the overpayment under section
1341(b)(1)).
The payment of the requested
refund does not mean the IRS has
accepted the application as correct. If
the IRS later determines the claimed
deductions or credits are due to an
overstatement of the value of
property, negligence, disregard of
rules, or substantial understatement
of income tax, the corporation may be
assessed penalties. Interest is also
charged on any amounts erroneously
refunded, credited, or applied.
The IRS may need to contact the
corporation or its authorized
representative for more information.
To designate an attorney or
representative, attach Form 2848,
Power of Attorney and Declaration of
Representative, to Form 1139.

Disallowance of the
Application
An application for a tentative refund is
not treated as a claim for credit or
refund. It may be disallowed if there
are any material omissions or math
errors that are not corrected within

the 90-day period. If the application is
disallowed in whole or in part, no suit
challenging the disallowance may be
brought in any court. But the
corporation can file a regular claim for
credit or refund. See Filing Form
1120X or Other Amended Return
below.

Excessive Allowances
Any amount applied, credited, or
refunded based on this application
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.

Filing Form 1120X or Other
Amended Return
A corporation can get a refund by
filing Form 1120X (or other amended
return, such as an amended Form
1120-PC) instead of Form 1139.
Generally, the corporation must file
an amended return within 3 years
after the date the return was due for
the tax year in which an NOL, net
capital loss, or unused credit arose
(or, if later, the date the return for that
year was filed).
Corporations 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, or
• A prior year general business credit
released because of the release of
the foreign tax credit.
For details, see Rev. Rul. 82-154,
1982-2 C.B. 394.
The procedures for processing an
amended return and Form 1139 are
different. The IRS is not required to
process an amended return within 90
days. However, if the IRS does not
process it within 6 months from the
date a corporation files it, the
corporation can file suit in court. If the
IRS disallows a claim on an amended
return and the corporation disagrees
with that determination, the
corporation must file suit no later than
2 years after the date the IRS
disallows it.

Definitions and Special
Rules
For corporations, a net operating loss
(NOL) is the excess of the deductions
allowed over gross income, computed
with the following adjustments.
• The NOL deduction for an NOL
carryback or carryover from another
year is not allowed.
• The dividends-received deductions
for dividends received from domestic
-2-

and foreign corporations and for
dividends received on certain
preferred stock of a public utility are
computed without regard to the
limitation on the aggregate amount of
deductions under section 246(b).
• The dividends-paid deduction for
dividends paid on certain preferred
stock of a public utility is computed
without regard to the limitation under
section 247(a)(1)(B).
• The domestic production activities
deduction under section 199 is
generally not allowed. See
Regulations section 1.199-7(c)(2) for
an exception.
The carryback period for an NOL
generally is 2 years. Special rules
(discussed below) apply to the portion
of an NOL attributable to:
• A specified liability loss;
• A farming loss;
• A qualified disaster loss, a qualified
recovery assistance loss, a qualified
disaster recovery assistance loss, or
a qualified GO Zone loss;
• An eligible small business loss;
• An eligible loss; or
• An excess interest loss.

Specified Liability Losses
Generally, a specified liability loss is
a loss arising from:
1. Product liability,
2. An act (or failure to act) that
occurred at least 3 years before the
beginning of the loss year and
resulted in a liability under a federal
or state law requiring:
a. Reclamation of land,
b. Decommissioning of a nuclear
power plant (or any unit thereof),
c. Dismantling of a drilling
platform,
d. Remediation of environmental
contamination, or
e. Payment under any workers
compensation act.
Any loss from a liability arising
from 2a through 2e, above, can be
taken into account as a specified
liability loss only if the corporation
used an accrual method of
accounting throughout the period in
which the act (or failure to act)
occurred. For details, see section
172(f).
To the extent an NOL is a
specified liability loss, the carryback
period for that part of the NOL is
generally 10 years.
However, the corporation can
make an irrevocable election to figure
the carryback period for a specified
liability loss without regard to the
special 10-year carryback rule. To

Page 3 of 6

Instructions for Form 1139

9:02 - 16-MAR-2009

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

make the election, attach to the
corporation’s timely filed tax return for
the loss year a statement that the
corporation is electing to have the
carryback period for the NOL under
section 172(b)(1)(C) determined
without regard to the special 10-year
carryback rule. If the corporation
timely filed its tax return without
making the election, it can make the
election on an amended return filed
within 6 months of the due date of the
return (excluding extensions). Attach
the election to the amended return
and write “Filed pursuant to section
301.9100-2” on the election
statement.

Farming Loss
A farming loss is the smaller of:
1. The amount that would be the
NOL for the tax year if only income
and deductions attributable to farming
businesses (as defined in section
263A(e)(4)) were taken into account,
or
2. The NOL for the tax year.
To the extent the NOL is a farming
loss, the carryback period is 5 years.
However, the corporation can
make an irrevocable election to figure
the carryback period for a farming
loss without regard to the special
5-year carryback rule. To make this
election, attach to the corporation’s
timely filed tax return for the loss year
a statement that the corporation is
electing to have the carryback period
for the NOL under section
172(b)(1)(G) determined without
regard to the special 5-year carryback
rule. If the corporation timely filed its
tax return without making the
election, it can make the election on
an amended return filed within 6
months of the due date of the return
(excluding extensions). Attach the
election to the amended return and
write “Filed pursuant to section
301.9100-2” on the election
statement.

Qualified Disaster Loss
A qualified disaster loss is the smaller
of:
1. The sum of:
a. Any loss occurring in a disaster
area and attributable to a federally
declared disaster (as defined in
section 165(h)(3)(C)), occurring
before January 1, 2010, and
b. Any qualified disaster expenses
allowable under section 198A (even if
the corporation did not elect to treat
such expenses as qualified disaster
expenses), or
2. The NOL for the tax year.

A qualified disaster loss does not
include any loss from property used
in connection with any private or
commercial golf course, country club,
massage parlor, hot tub facility,
suntan facility, or any store for which
the principal business is the sale of
alcoholic beverages for consumption
off premises or any gambling or
animal racing property. See sections
172(j)(4) and 1400N(p)(3) for more
details.
The portion of an NOL that is a
qualified disaster loss can be carried
back 5 years. Any such loss not
applied in the 5 preceding years can
be carried forward up to 20 years.
The corporation can make an
irrevocable election to figure the
carryback period for the qualified
disaster loss without regard to the
special 5-year carryback rule. To
make this election, attach to the tax
return filed by the due date (including
extensions), a statement that the
corporation is electing to treat the
qualified disaster loss without regard
to the special 5-year carryback rule. If
the corporation timely filed its return
without making the election, it can still
make the election on an amended
return filed within 6 months of the due
date of the return (excluding
extensions). Attach the election to the
amended return and write “Filed
pursuant to section 301.9100-2” on
the election statement.

Qualified Gulf Opportunity Zone
(GO Zone) Loss
For tax years beginning in 2008 and
later, a qualified GO Zone loss is the
smaller of:
1. The NOL for the tax year
reduced by any specified liability loss
to which a 10-year carryback applies,
or
2. Any depreciation or
amortization allowable for any
qualified GO Zone nonresidential real
property and residential rental
property placed in service during the
tax year and before 2009 and
specified GO Zone extension
property placed in service during the
tax year and after 2008 and generally
before 2011 (even if an election was
made not to claim any special
depreciation allowance for such
property).
The portion of an NOL that is a
qualified GO Zone loss can be carried
back 5 years. Any such loss not
applied in the 5 preceding years can
be carried forward up to 20 years.
-3-

A corporation can make an
irrevocable election to figure the
carryback period for a qualified GO
Zone loss without regard to the
special 5-year carryback rule. To
make the election, attach to the
corporation’s timely filed tax return for
the loss year a statement that the
corporation is electing to have the
carryback period for the NOL under
section 1400N(k)(1)(A)(i) determined
without regard to the special 5-year
carryback rule. If the corporation
timely filed its tax return without
making the election, it can make the
election on an amended return filed
within 6 months of the due date of the
return (excluding extensions). Attach
the election to the amended return
and write “Filed pursuant to section
301.9100-2” on the election
statement.

Qualified Recovery Assistance
Loss
To the extent an NOL is a qualified
recovery assistance loss, the
corporation can carryback that part of
the loss 5 years. Any such loss not
applied in the 5 preceding years can
be carried forward up to 20 years.
See Publication 4492-A, Information
for Taxpayers Affected by the May 4,
2007, Kansas Storms and
Tornadoes, for a definition and
details.
The corporation can make an
irrevocable election to figure the
carryback period for a qualified
recovery assistance loss without
regard to the special 5-year carryback
rule. To make this election, attach to
the tax return filed by the due date
(including extensions), a statement
that the corporation is electing to treat
the qualified recovery assistance loss
without regard to the special 5-year
carryback rule. If the corporation
timely filed its return without making
the election, it can still make the
election on an amended return filed
within 6 months of the due date of the
return (excluding extensions). Attach
the election to the amended return
and write “Filed pursuant to section
301.9100-2” on the election
statement.

Qualified Disaster Recovery
Assistance Loss
To the extent an NOL is a qualified
disaster recovery assistance loss, the
corporation can carry back that part
of the loss 5 years. Any such loss not
applied in the 5 preceding years can
be carried forward up to 20 years.
See Pub. 4492-B, Information for
Affected Taxpayers in the Midwestern

Page 4 of 6

Instructions for Form 1139

9:02 - 16-MAR-2009

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Disaster Areas, for a definition and
details.
The corporation can make an
irrevocable election to figure the
carryback period for a qualified
disaster recovery assistance loss
without regard to the special 5-year
carryback rule. To make this election,
attach to the tax return filed by the
due date (including extensions), a
statement that the corporation is
electing to treat the qualified disaster
recovery assistance loss without
regard to the special 5-year carryback
rule. If the corporation timely filed its
return without making the election, it
can still make the election on an
amended return filed within 6 months
of the due date of the return
(excluding extensions). Attach the
election to the amended return and
write “Filed pursuant to section
301.9100-2” on the election
statement.
If a qualified disaster recovery
assistance casualty loss is
CAUTION included in an NOL that is
treated as a qualified disaster
recovery assistance loss, such a
casualty loss cannot be deducted as
a disaster loss occurring in a prior
year under section 165(i).

!

Eligible Small Business Loss
An eligible small business loss is the
smaller of:
1. The amount that would be the
2008 NOL if only income, gains,
losses, and deductions attributable to
eligible small businesses were taken
into account, or
2. The 2008 NOL.
An eligible small business is a
small business as defined in section
172(b)(1)(F)(iii), except that its 3-year
average annual gross receipts can be
up to $15 million (instead of $5
million). The gross receipts test is
applied at the partnership, corporate,
or sole proprietorship level. The
aggregation rules of section 448(c)(2)
also apply.
A 2008 NOL is any NOL for a tax
year ending in 2008. However, a
fiscal year corporation can elect to
treat an NOL for a tax year beginning
in 2008 as a 2008 NOL. To make this
election, attach to the tax return for
the tax year beginning in 2008, a
statement that the corporation is
electing under section 172(b)(1)(H) to
treat the NOL as a 2008 NOL. The
return must be filed by the later of its
due date (including extensions) or
April 17, 2009. If the corporation
timely filed its return without making

the election, it can still make the
election on an amended return filed
within 6 months of the due date of the
return (excluding extensions). Attach
the election to the amended return
and write “Filed pursuant to section
301.9100-2” on the election
statement.

Eligible Loss

The corporation can elect a 3, 4, or
5-year carryback period for the
portion of the 2008 NOL that is an
eligible small business loss. Any such
loss not used in the carryback years
can be carried forward up to 20
years. To make this election, the
corporation must attach to its tax
return a statement that the
corporation is electing, under section
172(b)(1)(H), a 3, 4, or 5-year
carryback period for its 2008 NOL.
The return must be filed by the later
of its due date (including extensions)
or April 17, 2009. If the corporation
filed its tax return without making the
election, it can still make the election
on an amended return filed within 6
months of the due date of the return
(excluding extensions) or, if later, by
April 17, 2009. Attach the election to
the amended return and, if filed after
April 17, 2009, write “Filed pursuant
to section 301.9100-2” on the election
statement. Once made, the election is
irrevocable.

For a corporation, an eligible loss
is any loss attributable to a federally
declared disaster (as defined in
section 1033(h)(3)). An eligible loss
does not include a farming loss, a
qualified disaster loss, a qualified GO
Zone loss, a qualified recovery
assistance loss, or a qualified
disaster recovery assistance loss. An
eligible loss also does not include an
eligible small business loss for which
the corporation elects a 3, 4, or
5-year carryback period.

Changing the carryback period. If
the corporation has already filed a tax
return for its 2008 NOL tax year and
wants to elect to use a 3, 4, or 5-year
carryback period for an eligible small
business loss, the corporation must
file Form 1139 (or an amended
return) for the earliest tax year to
which it is carrying back its 2008
NOL. The Form 1139 or amended
return must be filed by the later of:
1. 6 months after the due date
(excluding extensions) for filing the
tax return for the corporation’s 2008
NOL tax year, or
2. April 17, 2009.
Enter “2008 NOL Carryback
Election Pursuant to Rev. Proc.
2009-19” across the top of the Form
1139 or amended return. If the
corporation already filed Form 1139
or an amended return to claim its
2008 NOL carryback, also enter
“Amended NOL Carryback Election
Pursuant to Rev. Proc. 2009-19”
across the top of the amended Form
1139 or amended return. If the
corporation chooses to file an
amended return, see Filing Form
1120X or Other Amended Return on
page 2.
-4-

To the extent the NOL is an eligible
loss, the carryback period is 3 years,
but only if the corporation meets the
gross receipts test of section 448(c)
or is engaged in the trade or business
of farming (as defined in section
263A(e)(4)) for the loss year.

Only the eligible loss portion of the
NOL can be carried back 3 years.
Any such loss not applied in the
preceding 3 years can be carried
forward up to 20 years.

Excess Interest Loss
If the corporation has a corporate
equity reduction transaction, a
different carryback period may apply.
See section 172(b)(1)(E).
Allocation of NOLs when a loss
corporation has an ownership
change. If the corporation has a
loss for a year and has an ownership
change, special rules apply for
allocating NOLs. For details, see
Regulations section 1.382-6.

Specific Instructions
Address
Include the room, suite, or other unit
number after the street address. If the
Post Office does not deliver mail to
the street address and the
corporation has a P.O. box, enter the
box number instead of the street
address.
If the corporation receives its mail
in care of a third party (such as an
accountant or an attorney), enter on
the street address line “C/O” followed
by the third party’s name and street
address or P.O. box.

Line 1a—Net Operating Loss
If the corporation is claiming a
tentative refund based on the
carryback of any of the NOLs
discussed under Definitions and
Special Rules, include the amount of
the carryback on line 1a. Attach any

Page 5 of 6

Instructions for Form 1139

9:02 - 16-MAR-2009

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

statements required. See What To
Attach on page 2.

Line 1b—Net Capital Loss
A net capital loss can be carried back
3 years and treated as a short-term
capital loss in the carryback year. The
net capital loss can be carried back
only to the extent it does not increase
or produce an NOL in the tax year to
which it is carried. For special rules
for capital loss carrybacks, see
section 1212(a)(3).

Line 1c—Unused General
Business Credit
If a tentative refund is claimed based
on a carryback of an unused general
business credit (GBC), attach a copy
of the appropriate credit form for the
tax year in which the credit arose.
Except as provided in section 39(d),
an unused GBC can be carried back
1 year. Refigure the credit for the
carryback year on Form 3800,
General Business Credit (or Form
8844, Form 5884, Form 6478, Form
8835, or Form 8846, if applicable).
See the instructions for the applicable
credit form.

Line 1d—Other
Complete line 1d if Form 1139 is filed
to claim a tentative refund based on
an overpayment of tax due to a claim
of right adjustment under section
1341(b)(1). See the instructions for
line 28 on page 6.

Line 4
Foreign taxes taken as a credit in a
prior year can be reduced to zero by
the carryback of an NOL or a 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.
See Filing Form 1120X or Other
Amended Return on page 2.

Line 5
If the common parent of a
consolidated group files Form 1139 to
carry back a loss or credit arising in a
corporation’s separate return year to
a year in which the corporation joined
in the filing of a consolidated return,
the IRS is required to send the refund
for that year directly to, and in the
name of, the common parent (or
agent designated under Regulations
section 1.1502-77(d) for the
carryback year). See Regulations
sections 1.1502-78(a) and (b).
If the corporation is filing Form
1139 for a short tax year created

when the corporation became a
qualified new member of a
consolidated group (see Qualified
new members of a consolidated
group on page 1), the corporation
must answer “Yes” on line 5a and
enter the tax year ending date, name,
and EIN of the new common parent
on line 5b.

Lines 11 through 27—
Computation of Decrease in
Tax
In columns (a), (c), and (e), enter the
amount for the applicable carryback
year as shown on your original or
amended return or as adjusted by the
IRS. If the IRS has not acted on an
amended return, use the amounts
from the amended return and attach a
copy of it with “Attachment to Form
1139” written across the top.
Use columns (a) and (b), (c) and
(d), or (e) and (f) to enter amounts
before and after carryback for each
year to which the loss is carried. Start
with the earliest carryback year. Use
the remaining pairs of columns for
each consecutive preceding year until
the loss is fully absorbed. Enter the
ordinal number of years the loss is
being carried back and the date the
carryback year ends in the spaces
provided above columns (a) and (b),
(c) and (d), or (e) and (f).
For example, the loss year is the
2008 calendar year and the loss is
carried back 5 years. Enter “5th” and
“12/31/03” in the spaces provided
above columns (a) and (b). After
making the entries, it reads “5th
preceding tax year ended 12/31/03.”
Note. Additional Forms 1139 may
be needed if the corporation is
carrying back an NOL to more than 3
preceding tax years. On the
additional forms, complete lines 11
through 27 for each additional
preceding tax year as necessary.
Skip lines 1 through 10 and do not
sign the additional forms.
When completing lines 16 through
25, take into account any write-in
amounts that may have appeared on
the original return. For example, for a
tax year beginning in 2008, if Form
1120, Schedule J, line 2, was
increased by deferred tax under
section 1291, include that amount on
line 16.

Line 11—Taxable Income
From Tax Return
Enter in columns (b), (d), and (f) the
amounts from columns (a), (c), and
(e), respectively.
-5-

Line 12—Capital Loss
Carryback
Enter the capital loss carryback, but
not more than capital gain net
income. Capital gain net income is
figured without regard to the capital
loss carryback of the loss year or any
later year. Attach a copy of Schedule
D (Form 1120) for the carryback year.
Enter the amount of the capital loss
carryback as a positive number on
line 12.
When carrying over a net capital
loss to a later tax year, reduce the
amount of the net capital loss that
can be used in the later years by the
amount of the net capital loss
deductions used in the earlier years.
For details, see section 1212(a)(1).

Line 14—NOL Deduction
See Definitions and Special Rules on
page 2 to figure the carryback period.
NOLs are first applied to the earliest
year in the carryback period. Any
unused amount is carried to the next
tax year in the carryback period. Any
amount not used during the carryback
period is carried forward up to 20
years.

Line 16—Income Tax
In columns (b), (d), and (f), enter the
refigured income tax after taking into
account the carryback(s). See the
instructions for the corporate income
tax return for the applicable year for
details on how to figure the tax.
Attach a computation of the refigured
tax. Take into account section 1561
when refiguring the income tax.

Line 17—Alternative
Minimum Tax
For columns (b), (d), and (f), refigure
the alternative minimum tax.
Complete and attach Form 4626 for
the appropriate year.
Limit on alternative tax NOL
deduction. If the corporation carries
back any portion of an alternative tax
NOL (ATNOL) based on an NOL
carryback attributable to qualified
disaster losses, qualified GO Zone
losses, qualified recovery assistance
losses, or qualified disaster recovery
assistance losses, the
90%-of-alternativeminimum-taxable-income (AMTI) limit
does not apply to such portion of the
alternative tax NOL deduction
(ATNOLD). To determine the
ATNOLD for the carryback year, see
section 56(d)(1)(A). Also, see the
Instructions for Form 4626.

Page 6 of 6

Instructions for Form 1139

9:02 - 16-MAR-2009

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Line 19—General Business
Credit
In columns (b), (d), and (f), enter the
total of the corrected GBCs. Attach all
applicable Forms 3800, 5884, 8844,
6478, 8835, 8846, and 8884 used to
redetermine the GBC. Also, see the
instructions for line 1c.
Released general business credits.
If an NOL carryback or a net capital
loss carryback eliminates or reduces
a GBC in an earlier tax year, the
released GBC can be carried back 1
year.
See section 39 and the
Instructions for Form 3800 (or Forms
5884, 8844, 6478, 8835, 8846, or
8884) for more details on GBC
carrybacks.

Line 20—Other Credits
See the corporation’s tax return for
the carryback year for any additional
credits such as the nonconventional
source fuel credit, the possessions
tax credit, etc., that will apply in that
year. If any entry is made on line 20,
attach a statement identifying the
credits claimed.

Line 24—Other Taxes

such as recapture taxes, that will
apply in that year. If an entry is made
on line 24, identify the taxes on an
attached statement.

Line 28—Overpayment of
Tax Under Section 1341(b)(1)
For a tentative refund based on an
overpayment of tax under section
1341(b)(1), enter the overpayment on
line 28 and attach a computation
showing the information required by
Regulations section 5.6411-1(d).
Paperwork Reduction Act Notice.
We ask for the information on this
form to carry out the Internal
Revenue laws of the United States.
You are required to give us the
information. We need it to ensure that
you are complying with these laws
and to allow us to figure and collect
the right amount of tax.
You are not required to provide the
information requested on a form that
is subject to the Paperwork Reduction
Act unless the form displays a valid
OMB control number. Books or
records relating to a form or its
instructions must be retained as long
as their contents may become
material in the administration of any

For columns (b), (d), and (f), refigure
any other taxes not mentioned above,

-6-

Internal Revenue law. Generally, tax
returns and return information are
confidential, as required by section
6103.
The time needed to complete and
file this form will vary depending on
individual circumstances. The
estimated average time is:
Recordkeeping . . . . . .

27 hr., 1 min.

Learning about the law
or the form . . . . . . . . .

3 hr., 43 min.

Preparing the form . .

8 hr., 59 min.

Copying, assembling,
and sending the form to
the IRS . . . . . . . . . . . .

1 hr., 20 min.

If you have comments concerning
the accuracy of these time estimates
or suggestions for making this form
simpler, we would be happy to hear
from you. You can write to the
Internal Revenue Service, Tax
Products Coordinating Committee,
SE:W:CAR:MP:T:T:SP, 1111
Constitution Ave. NW, IR-6526,
Washington, DC 20224. Do not send
the form to this office. Instead, see
Where To File on page 1.