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Page 3 of 4 Fileid: … ns/i1139/202111/a/xml/cycle05/source 12:09 - 13-Dec-2021
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
NOL to each of the 2 preceding tax overpayment of tax due to a claim of “12/31/19” in the spaces provided
years. Any such loss not applied in the 2 right adjustment under section 1341(b) above columns (a) and (b). After making
preceding years can be carried forward (1). See the instructions for line 29, the entries, it reads “2nd preceding tax
up to 20 years. later. year ended 12/31/19 .”
Allocation of NOLs when a loss cor- Line 4 When completing lines 16 through
poration has an ownership change. Foreign taxes taken as a credit in a prior 26, take into account any write-in
If the corporation has a loss for a year year can be reduced to zero by the amounts that may have appeared on
and has an ownership change, special carryback of an NOL or a net capital the original return. For example, for a
rules apply for allocating NOLs. For loss on Form 1139. A corporation must tax year beginning in 2021, if Form
details, see Regulations section file Form 1120X (or other amended 1120, Schedule J, line 2, was increased
1.382-6. return) instead of Form 1139 to carry by deferred tax under section 1291,
back a prior year foreign tax credit include that amount on line 16.
Specific Instructions released due to an NOL or net capital Line 11—Taxable Income From
loss carryback. See Filing Form 1120X
Address or Other Amended Return, earlier. Tax Return
Enter in columns (b), (d), and (f), the
Include the room, suite, or other unit Line 5 amounts from columns (a), (c), and (e),
number after the street address. If the
Post Office does not deliver mail to the If the common parent of a consolidated respectively.
street address and the corporation has group files Form 1139 to carry back a
a P.O. box, enter the box number loss or credit arising in a corporation's Line 12—Capital Loss
instead of the street address. separate return year to a year in which Carryback
the corporation joined in the filing of a Enter the capital loss carryback, but not
If the corporation receives its mail in consolidated return, the IRS is required more than capital gain net income.
care of a third party (such as an to send the refund for that year directly Capital gain net income is figured
accountant or an attorney), enter on the to, and in the name of, the common without regard to the capital loss
street address line “C/O” followed by the parent (or agent designated under carryback of the loss year or any later
third party's name and street address or Regulations section 1.1502-77(d) for year. Attach a copy of Schedule D
P.O. box. the carryback year). See Regulations (Form 1120) for the carryback year.
sections 1.1502-78(a) and (b). Enter the amount of the capital loss
Line 1a—Net Operating Loss carryback as a positive number on
If the corporation is filing Form 1139
If the corporation is claiming a tentative line 12.
for a short tax year created when the
refund based on the carryback of any of
corporation became a qualified new When carrying over a net capital loss
the NOLs discussed under Definitions
member of a consolidated group (see to a later tax year, reduce the amount of
and Special Rules, include the amount
Qualified new members of a the net capital loss that can be used in
of the carryback on line 1a. Attach any
consolidated group, earlier) the the later years by the amount of the net
statements required. See What To
corporation must answer “Yes” on capital loss deductions used in the
Attach, earlier.
line 5a and enter the tax year ending earlier years. For details, see section
Line 1b—Net Capital Loss date, name, and EIN of the new 1212(a)(1).
Generally, a net capital loss can be common parent on line 5b.
Line 14—NOL Deduction
carried back 3 years and treated as a Lines 11 through 28 — For tax years beginning before January
short-term capital loss in the carryback
Computation of Decrease in 1, 2021, the NOL deduction is the total
year. The net capital loss can be carried
back only to the extent it does not Tax of the NOL carryforwards to such year
increase or produce an NOL in the tax In columns (a), (c), and (e), enter the plus the NOL carrybacks to that year.
year to which it is carried. For special amount for the applicable carryback For tax years beginning after
rules for capital loss carrybacks, see year as shown on your original or December 31, 2020, the NOL deduction
sections 1212(a)(3) and (4). amended return or as adjusted by the for the year cannot exceed the
IRS. aggregate amount of NOLs arising in
Line 1c—Unused General tax years beginning before January 1,
Business Credit Use columns (a) and (b), (c) and (d),
2018, carried to such year plus the
or (e) and (f) to enter amounts before
If the corporation is claiming a tentative lesser of:
and after carryback for each year to
refund based on a carryback of an 1. The aggregate amount of NOLs
which the loss is carried. Start with the
unused general business credit (GBC), rising in tax years beginning after
earliest carryback year. Use the
attach a copy of the appropriate credit December 31, 2017, carried to such tax
remaining pairs of columns for each
form for the tax year in which the credit year; or
consecutive preceding year until the
arose. Except as provided in section
loss is fully absorbed. Enter the ordinal
39(d), an unused GBC can be carried 2. 80 percent of the excess, if any,
number of years the loss is being
back 1 year. Refigure the credit for the of taxable income determined without
carried back and the date the carryback
carryback year on Form 3800, or the any NOL deduction, section 199A
year ends in the spaces provided above
applicable credit form. See the deduction, or section 250 deduction,
columns (a) and (b), (c) and (d), or (e)
Instructions for Form 3800. over any NOL carryover to the tax year
and (f). from tax years beginning before January
Line 1d—Other 1, 2018.
For example, if the loss year is the
Complete line 1d if Form 1139 is filed to 2021 calendar year and the loss is An exception applies for NOLs from
claim a tentative refund based on an carried back 2 years, enter “2nd” and insurance companies other than life
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