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Form 1138 (Rev. 11-2018) Page 2
Line 2. The amount of the expected NOL must be based on all ofthe
General Instructions facts relating to the operation of the corporation. Consider thefollowing
Section references are to the Internal Revenue Code unless otherwise items when estimating the amount of the expected NOL.
noted. 1. The number and dollar amounts of the corporation’s government
Future developments. For the latest information about developments contracts that have been canceled,
related to Form 1138 and its instructions, such as legislation enacted 2. Profit and loss statements, and
after they were published, go to www.irs.gov/Form1138.
3. Other factors peculiar to the corporation’s operations.
What’s New See section 172 to help determine the amount of the expected NOL.
The 2-year carryback rule generally does not apply to net operating Limitations apply to (a) the amount of taxable income of a new loss
losses (NOLs) arising in tax years ending after December 31, 2017. corporation for any tax year ending after an ownership change that may
Exceptions apply to certain farming losses and NOLs of insurance be offset by any pre-change NOLs and (b) the use of preacquisition
companies, other than life insurance companies. See section 172(b) as losses of one corporation to offset recognized built-in gains of another
amended by P.L. 115-97, section 13302. corporation. For more information, see sections 382 and 384 and the
related regulations.
Purpose of Form Line 3. Enter the reduction of previously determined tax attributable to
the carryback, for tax years before the tax year ofthe NOL. Previously
A corporation that expects to incur an NOL in the current tax year that determined tax is generally:
can be carried back to its preceding tax year can file Form 1138 to
extendthe time for payment of tax for such immediately preceding tax 1. The amount shown on the return, plus any amounts assessed as
year. This includes extending the time for payment of a taxdeficiency. deficiencies before Form 1138 is filed; minus
The payment of tax that can be postponed cannotexceed the expected 2. Any abatements, credits, or refunds allowed or made before Form
overpayment from the carryback of theNOL. 1138 is filed.
Only payments of tax that are required to be paid after the filing of See section 1314(a).
Form 1138 are eligible for extension. Do not file this form if all the Attach a schedule showing how the reduction was figured. See the
required payments have been paid or were required to have been paid. instructions for the corporate income tax return for information on
If the corporation previously filed Form 1138 and later finds figuring the NOL deduction and recomputing the tax.
information that will change the amount of the expected NOL, the Line 6a. For the year shown on line 4, enter on line 6a the total of:
corporation can file a revised Form 1138. If the amount of the NOL is
increased based on the new information, the corporation can postpone 1. The total tax shown on the return, plus
the payment of a larger amount of tax as long as the larger amount has 2. Any amount assessed as a deficiency (or as interest or a penalty)
not yet been paid or is not yet required to be paid. If the amount of the prior to the filing of this Form 1138.
NOL is reduced because of the new information, the corporation must Line 6b. Enter the total of the following.
pay the tax to the extent that the amount of tax postponed on the
original filing exceeds the amount of tax postponed on the revised filing. 1. The amount of tax paid or required to be paid before the date this
form is filed. This includes any amount assessed as a deficiency or as
When and Where To File interest or a penalty if this form is filed more than 21 calendar days after
notice and demand for payment was made (more than 10 business days
File Form 1138 after the start of thetax year of the expected NOL but if the amount for which the notice and demand for payment was made
before the tax of thepreceding tax year is required to be paid. equals or exceeds $100,000). An amount of tax for which the
Generally, file Form1138 with the Internal Revenue Service Center corporation has received an extension of time to pay (under section
where thecorporation files its income tax return. 6161) is not considered required to be paid before the end of the
A corporation can file Form 1138 separately or with Form 7004, extension; plus
Application for Automatic Extension of Time To File Certain Business 2. The amount of refunds, credits, and abatements made before the
Income Tax, Information, and Other Returns. If Form 1138 and Form date this form is filed.
7004 are filed together, Form 1138 will reduce or eliminate the amount
of tax to be deposited when Form 7004 is filed. If Form 1138 is filed with
Form 7004, then file Form 1138 with the Internal Revenue Service Paperwork Reduction Act Notice. We ask for the informationon this
Center at the applicable address where the corporation files Form 7004. form to carry out the Internal Revenue laws of the United States. You
Period of extension. In general, the extension for paying the tax are required to give us the information. We need itto ensure that you are
expires at the end of the month in which the return for the tax year of complying with these laws and to allowus to figure and collect the right
the expected NOL is required to be filed (including extensions). amount of tax.
The corporation can further extend the time for payment by filing You are not required to provide the information requested on a form
Form 1139, Corporation Application for Tentative Refund, before the that is subject to the Paperwork Reduction Act unless the form displays
period of extension ends. See the Instructions for Form 1139. The a valid OMB control number. Books or records relating to a form or its
period will be further extended until the date the IRS informs the instructions must be retained as long as their contents may become
corporation that it has allowed or disallowed the application in whole or material in the administration of any Internal Revenue law. Generally, tax
in part. returns and return information are confidential, as required by section
6103.
Termination of extension. The IRS can terminate the extension
if it believes that any part of the form contains erroneous or The time needed to complete and file this form will vary depending on
unreasonable information. The IRS also can terminate theextension if it individual circumstances. The estimated burden for business taxpayers
believes it may not be able to collect the tax. filing this form is approved under OMB control number 1545-0123 and
is included in the estimates shown in the instructions for their business
Interest. Interest is charged on postponed amounts from the dates that income tax return.
the payments would normally be due. The interest is figured at the
underpayment rate specified in section 6621. 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 send us comments from www.irs.gov/
Specific Instructions FormComments. Or you can write to: Internal Revenue Service, Tax
Address. Include the suite, room, or other unit number after thestreet Forms and Publications Division, 1111 Constitution Ave. NW, IR-6526,
address. If the post office does not deliver mail to thestreet address Washington, DC 20224. Do not send Form 1138 to this office. Instead,
and the corporation has a P.O. box, show the boxnumber instead. see When and Where To File, earlier.
If the corporation receives its mail in care of a third party, such as an
accountant or attorney, enter on the street address line “C/O” followed
by the third party’s name and street address or P.O. box.
If the corporation’s address is outside the United States or its
possessions or territories, fill in the line for “City or town, state, and ZIP
code” in the following order: city, province or state, and country. Follow
the foreign country’s practice for entering the postal code, if any. Do not
abbreviate the country name.
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