IRS Form 1139 - Corporation Application for Tentative Refund

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IRS Form 1139 – Corporation Application for Tentative Refund – In the complex world of corporate taxation, recovering overpaid taxes quickly can make a significant difference to your business’s cash flow. Enter IRS Form 1139, the Corporation Application for Tentative Refund—a powerful tool for eligible corporations seeking a speedy refund on prior-year taxes. Whether you’re dealing with a net operating loss (NOL) carryback, net capital loss, or unused credits, understanding Form 1139 is essential for C corporations looking to optimize their tax strategy.

This comprehensive guide breaks down everything you need to know about IRS Form 1139 for the 2025 tax year, including eligibility, filing deadlines, step-by-step instructions, and common pitfalls. Backed by the latest IRS guidelines, we’ll help you navigate this form efficiently to secure your tentative refund without unnecessary delays.

What Is IRS Form 1139?

IRS Form 1139 allows corporations (excluding S corporations) to apply for a tentative refund of taxes already paid. This “quick refund” is processed within 90 days and is particularly useful for carryback scenarios where losses or credits from the current year can offset taxes from prior years.

The form covers refunds arising from:

Carryback of a net operating loss (NOL) or loss from life insurance company operations.
Carryback of a net capital loss.
Carryback of an unused general business credit (typically one year).
Overpayment due to a claim of right adjustment under IRC Section 1341(b)(1).
Election under Section 53(e)(5) to claim 100% of prior-year minimum tax for tax years beginning in 2018.

Unlike a formal amended return (Form 1120-X), Form 1139 provides faster relief but isn’t a permanent claim—if disallowed, you’ll need to file a full refund claim later. This makes it ideal for businesses facing liquidity crunches due to unexpected losses.

Recent updates for 2025 emphasize electronic filing options and direct deposit for refunds, streamlining the process for modern corporations.

Who Should File IRS Form 1139?

Not every corporation qualifies for a tentative refund via Form 1139. It’s designed for C corporations (including members of consolidated groups) experiencing specific tax adjustments.

Eligibility criteria include:

You must have filed (or be filing) your income tax return for the year generating the loss or credit.
Applicable to carrybacks only—forward carryovers require an amended return.
Special rules for qualified new members of consolidated groups, treating their separate return year as aligning with the group’s tax year end.
Excludes S corporations, partnerships, and individuals.

If your business qualifies, filing Form 1139 can unlock funds faster than waiting for a standard refund processing timeline.

When and Where to File Form 1139

Timing is critical for a successful tentative refund application. The IRS requires prompt filing to ensure eligibility.

Filing Deadlines

General Rule: Within 12 months of the end of the tax year in which the NOL, net capital loss, unused credit, or claim of right adjustment originated.
Extension Impact: If you filed Form 1138 for an extension to pay, submit by the last day of the month containing the due date (including extensions) for the return from the carryback year.
Income Tax Return Requirement: File your current-year return no later than the date you submit Form 1139.

For example, if your 2025 tax year ends December 31, 2025, you have until December 31, 2026, to file for a carryback from that year.

Where to File

Mail to the IRS Service Center where you file your corporate income tax return (e.g., based on your principal business location).
Do not attach to your income tax return—file separately.
Electronic Filing: Use Form 8453-TR for e-filing authorization. This option is encouraged for faster processing.

The IRS aims to process complete applications within 90 days of receipt or the return’s due date (whichever is later).

IRS Form 1139 Download and Printable

Download and Print: IRS Form 1139

Step-by-Step Guide: How to Complete IRS Form 1139

Completing Form 1139 requires careful computation of tax decreases across carryback years. Use the December 2025 revision for accuracy. Download the form and instructions from IRS.gov.

Part I: Carryback Information

Line 1a: Enter the NOL carryback amount and attach supporting statements.
Line 1b: Input net capital loss carryback (limited to avoid creating an NOL) with Schedule D (Form 1120).
Line 1c: Detail unused general business credit carryback; attach Form 3800.
Line 1d: For claim of right adjustments, provide computation per Regulations §5.6411-1(d).
Line 2d (New for 2025): Check if resubmitting due to IRS request; attach only corrected items.
Lines 4–5: Address foreign tax credits and consolidated group status.

Part II: Computation of Decrease in Tax

This is the core section—refigure taxes for each carryback year in columns (a)–(f), starting with the earliest year.

Line 11: Transfer taxable income from your original returns.
Line 12: Apply capital loss carryback as a positive deduction.
Line 14: Compute NOL deduction—post-2020 NOLs limited to 80% of taxable income (exceptions for farming/insurance losses).
Lines 16–18: Refigure income tax, AMT (Form 4626), and base erosion minimum tax.
Lines 20–21: Adjust credits, including released general business credits.
Line 25: Recalculate other taxes (e.g., recapture).
Line 29: Overpayment under Section 1341.
Line 30: Opt for direct deposit (routing/account numbers).

Pro Tip: Apply carrybacks to the earliest year first. Attach detailed computations for all refigurations.

Required Attachments for Form 1139

To avoid delays or disallowance, include:

First two pages of the current-year income tax return.
All schedules/forms generating the carryback (e.g., Schedule D, Form 3800).
Refigured schedules for carryback years.
Forms 8886 (reportable transactions) if applicable.
Election statements (e.g., waiving carryback).
IRS correspondence for resubmissions.

Omissions can lead to math error assessments or full disallowance.

Common Mistakes to Avoid When Filing IRS Form 1139

Even seasoned tax pros trip up on Form 1139. Here’s how to steer clear:

Missing Deadlines: Late filings forfeit tentative refunds—mark your calendar 12 months out.
Incomplete Computations: Forgetting to limit post-2020 NOLs to 80% of taxable income is a frequent error.
Wrong Attachments: Always include refigured forms; partial submissions get rejected.
Ignoring Consolidated Rules: Qualified new members must align dates correctly.
Overlooking Elections: Farming losses allow a 2-year carryback—elect to forgo if preferring indefinite carryforward.

Consult a tax professional for complex scenarios like foreign tax credits or Section 965 inclusions.

Frequently Asked Questions (FAQs) About IRS Form 1139

Can I e-file Form 1139?

Yes, via Form 8453-TR for authorization—it’s faster and encouraged for 2025 filings.

What if my tentative refund is denied?

File a formal claim using Form 1120-X within the standard statute of limitations (usually 3 years).

Does Form 1139 apply to NOLs after 2020?

Yes, but only for eligible farming/insurance losses (2-year carryback); others are carryforward-only with 80% limits.

How do I waive an NOL carryback?

Make the election on Form 1120 (Schedule K) or an amended return.

Final Thoughts: Maximize Your Corporation’s Tax Recovery with Form 1139

IRS Form 1139 is a lifeline for corporations navigating losses and credits, offering a pathway to rapid tentative refunds that can bolster your bottom line. By filing accurately and on time, you can turn tax setbacks into financial opportunities. Always reference the official IRS instructions for the most current rules, and consider professional advice for tailored strategies.

Ready to file? Download Form 1139 and its instructions from IRS.gov today. For more tax tips, explore our guides on NOL carrybacks and corporate tax amendments.

Last updated: December 2025. This article is for informational purposes only and not tax advice. Consult a qualified advisor for your situation.