IRS Form 1139 – IRS Forms, Instructions, Pubs 2026

IRS Form 1139 – IRS Forms, Instructions, Pubs 2026 – In the complex world of corporate taxation, navigating refunds and carrybacks can be challenging. IRS Form 1139, known as the Corporation Application for Tentative Refund, offers corporations a streamlined way to claim quick refunds for overpaid taxes due to specific losses or credits. This form is particularly useful for businesses facing net operating losses (NOLs) or other qualifying events, allowing them to recover funds faster than through a standard amended return. In this SEO-optimized guide, we’ll break down everything you need to know about Form 1139, including its purpose, eligibility, filing process, and recent updates as of the December 2025 revision. Whether you’re a tax professional or a corporate executive, understanding this form can help optimize your tax strategy.

What Is IRS Form 1139 and Its Purpose?

IRS Form 1139 is designed for corporations to apply for a “tentative” or quick refund of taxes. Unlike a full amended return, this application focuses on expedited processing for refunds stemming from carrybacks or adjustments. The primary purposes include:

  • Carryback of a Net Operating Loss (NOL): Allowing corporations to apply losses from the current year to prior profitable years, reducing past tax liabilities.
  • Carryback of a Net Capital Loss: Similar to NOLs, but for capital losses, which can be carried back up to three years.
  • Carryback of an Unused General Business Credit: Credits that weren’t fully utilized in prior years can be carried back one year.
  • Overpayment Due to a Claim of Right Adjustment: Under section 1341(b)(1), this addresses situations where income was included in a prior year but later repaid.
  • Election Under Section 53(e)(5): For claiming 100% of prior year minimum tax liability for tax years beginning in 2018.

This form enables corporations to receive refunds within 90 days of IRS receipt, providing faster cash flow compared to the standard claim process. Note that S corporations cannot use Form 1139; they must follow different procedures. Tax-exempt organizations seeking refunds reported on Form 990-T should consult those specific instructions instead.

Who Is Eligible to File Form 1139?

Eligibility for Form 1139 is limited to corporations (excluding S corporations) that have experienced one of the qualifying events mentioned above. Key considerations include:

  • NOL Carrybacks: For losses after 2020, carrybacks are generally repealed except for farming losses or losses from non-life insurance companies, which can be carried back two years. Corporations can elect to waive the carryback and carry losses forward indefinitely in these cases.
  • Consolidated Groups: Special rules apply for qualified new members joining a group, treating their separate return year as aligning with the group’s tax year end.
  • Post-2020 NOL Limitations: NOL deductions are capped at 80% of taxable income for losses arising after 2017, except for non-life insurance companies.

If your corporation has had section 965 inclusions (related to foreign income), there may be restrictions on NOL carrybacks to those years. Always verify eligibility based on your specific tax situation.

Recent Updates to Form 1139 (December 2025 Revision)

The IRS regularly updates Form 1139 to reflect tax law changes. The December 2025 revision includes several key updates:

  • New Line 2d for Resubmissions: Corporations resubmitting the form in response to IRS correspondence must check this box and attach the correspondence.
  • Direct Deposit Encouragement: If your corporation has U.S. banking access, use lines 30a-30c for faster refund delivery.
  • E-Filing with Form 8453-TR: A new form for electronic declarations when e-filing Form 1139.
  • NOL Carryback Repeal Reminder: Confirmed for post-2020 losses, with exceptions for farming and insurance.
  • Special Elections for Pre-2021 NOLs: Refer to Rev. Proc. 2020-24 for waiving carrybacks or excluding section 965 years.

These changes ensure the form aligns with current tax code, emphasizing efficiency and compliance. Use this revision for tax years 2025 and beyond.

How to File IRS Form 1139: Step-by-Step Guide?

Filing Form 1139 requires careful preparation to ensure quick processing. Do not attach it to your corporation’s income tax return—file it separately. Here’s a step-by-step overview:

  1. Gather Required Information: Collect your corporation’s income tax returns for the loss year and carryback years. Recalculate prior-year taxes after applying the carryback.
  2. Complete the Form: Use the official PDF from the IRS website (e.g., https://www.irs.gov/pub/irs-pdf/f1139.pdf). Enter details on lines 1a-1d for the type of carryback or adjustment.
  3. Compute Tax Decreases: On lines 11-28, detail before-and-after carryback figures for each affected year, starting with the earliest. Attach supporting schedules like Schedule D or Form 3800.
  4. Attach Necessary Documents: Include the first two pages of your income tax return, relevant forms, election statements, and refigured carryback year calculations.
  5. Sign and Date: Ensure an authorized officer signs the form.
  6. Submit: Mail to the IRS Service Center where your income tax return is filed, or e-file using Form 8453-TR.

For direct deposit, complete lines 30a-30c. The IRS aims to process within 90 days, but errors can lead to disallowance.

Key Deadlines for Filing

  • File within 12 months of the tax year end in which the NOL, loss, credit, or adjustment arose.
  • Your income tax return for the loss year must be filed before or on the same date as Form 1139.
  • If using Form 1138 for payment extension, file by the end of the month including the loss year’s return due date.

Common Scenarios for Using Form 1139

  • NOL Carryback Example: A corporation with a 2025 farming loss of $500,000 can carry it back two years, potentially refunding taxes paid in 2023 and 2024.
  • Unused Credit Carryback: If general business credits exceed liability, carry back the unused portion one year.
  • Claim of Right Adjustment: If income reported in a prior year is repaid, claim the overpayment on line 1d.

In consolidated groups, pay attention to line 5 for short-year carrybacks.

Benefits and Alternatives to Form 1139

The main benefit is speed: Tentative refunds provide quick liquidity, often within 90 days, aiding cash flow during tough times. However, it’s not a final determination— the IRS may later adjust or disallow.

Alternatives include filing an amended return via Form 1120X, which has a three-year statute but no 90-day guarantee. Use 1120X for non-carryback adjustments or if Form 1139 is disallowed.

FAQs About IRS Form 1139

1. What if my Form 1139 is disallowed?

You can’t sue in court over a tentative refund disallowance, but you can file a regular claim for refund.

2. Can I e-file Form 1139?

Yes, using the new Form 8453-TR for electronic authorization.

3. How do NOL limitations affect Form 1139?

Post-2020, NOLs are limited to 80% of taxable income, impacting the deduction amount.

4. Where can I download Form 1139?

Download the latest PDF from the IRS at https://www.irs.gov/pub/irs-pdf/f1139.pdf, and instructions at https://www.irs.gov/pub/irs-pdf/i1139.pdf.

Conclusion

IRS Form 1139 is a valuable tool for corporations seeking tentative refunds from carrybacks or adjustments, offering faster access to overpaid taxes. By understanding its requirements and updates, you can ensure compliant and efficient filing. Always consult a tax advisor for personalized advice, and refer to official IRS resources for the most current information.