IRS Instruction 1139 – IRS Forms, Instructions, Pubs 2026 – In the complex world of corporate taxation, securing a quick refund can provide much-needed liquidity during challenging financial periods. IRS Form 1139, known as the Corporation Application for Tentative Refund, allows eligible corporations to apply for expedited refunds based on specific tax carrybacks or adjustments. This form is particularly useful for businesses dealing with net operating losses (NOLs), net capital losses, or unused credits, enabling them to recover overpaid taxes from prior years efficiently. As of 2026, the form’s instructions have been updated in December 2025 to include new features like resubmission options and electronic filing requirements. In this comprehensive guide, we’ll break down everything you need to know about IRS Instruction 1139, including eligibility, filing deadlines, step-by-step instructions, and key considerations to optimize your application.
What Is IRS Form 1139 and When Should You Use It?
IRS Form 1139 is designed for corporations (excluding S corporations) seeking a “tentative” or quick refund of taxes. Unlike a standard amended return, this form accelerates the refund process, typically within 90 days, without constituting a formal claim. It’s primarily used for:
- Carryback of Net Operating Losses (NOLs): Refunding taxes by applying current-year losses to profitable prior years.
- Carryback of Net Capital Losses: Limited to three years back, treated as short-term losses.
- Unused General Business Credits: Carryback one year to offset prior tax liabilities.
- Claim of Right Adjustments under Section 1341(b)(1): For overpayments due to income adjustments.
- Elections under Section 53(e)(5): Claiming 100% of prior-year minimum tax for 2018 tax years.
Key reminders from the 2025 revision: Use the December 2025 version for 2025 and later years. Post-2020 NOL carrybacks are restricted to farming losses or non-life insurance company losses, with an 80% taxable income limitation for most post-2017 NOLs. If your corporation has experienced significant losses or credits, filing Form 1139 can help reclaim funds faster than waiting for a full audit via Form 1120X.
Who Is Eligible to File Form 1139?
Eligibility is straightforward but specific:
- Corporations Only: Applies to C corporations and certain others, but not S corporations or tax-exempt organizations (which use Form 990-T instead).
- Consolidated Groups: The common parent files on behalf of the group, with special rules for new members joining mid-year.
- Loss or Credit Requirements: Must have an NOL, net capital loss, unused credit, or qualifying adjustment from the current tax year.
- No Formal Claim Intent: This is for tentative refunds; if disallowed, you can’t sue immediately but can file a formal claim later.
Corporations with foreign tax credit implications or ownership changes should review special rules, such as NOL allocations under Section 382.
Filing Deadlines and Requirements for Form 1139
Timing is critical to avoid missing out on refunds:
- General Deadline: File within 12 months of the end of the tax year in which the NOL, loss, credit, or adjustment occurred. Your income tax return for that year must be filed no later than the Form 1139 submission date.
- Extensions and Special Cases: If you filed Form 1138 for a payment extension due to expected carrybacks, the deadline aligns with the extended return due date.
- CARES Act Impacts: For 2018-2020 NOLs, special elections allow carrybacks to Section 965 years, with deemed elections under Section 965(n).
- Irrevocable Elections: You can elect to waive carrybacks for post-2020 farming or insurance losses, but it’s permanent once made.
Always file Form 1139 separately from your income tax return—mail it to the IRS Service Center where your return is filed. Electronic filing requires Form 8453-TR.
Step-by-Step Guide to Filling Out Form 1139
Follow these specific instructions from IRS Instruction 1139 to complete the form accurately. Use the columns for before-and-after carryback calculations across up to three prior years.
Header and Basic Information
- Address: Include suite numbers and use “C/O” for third-party addresses.
- Line 1a: Enter the NOL carryback amount.
- Line 1b: Net capital loss carryback (positive amount).
- Line 1c: Unused general business credit.
- Line 1d: Other adjustments, like Section 1341 overpayments.
- Line 2d (New in 2025): Check if resubmitting in response to IRS correspondence and attach the letter.
Computation of Decrease in Tax (Lines 11-28)
Use pairs of columns (a/b, c/d, e/f) for each carryback year, starting with the earliest:
- Line 11: Taxable income from the original return.
- Line 12: Capital loss carryback (not exceeding capital gain net income).
- Line 14: NOL deduction, considering limits (e.g., 80% for post-2017 NOLs).
- Line 16: Refigured income tax.
- Line 17: Alternative minimum tax (use Form 4626 if applicable).
- Line 18: Base erosion minimum tax for large corporations.
- Line 20: General business credits (attach supporting forms).
- Line 25: Other taxes, including recaptures.
- Line 29: Section 1341 overpayment details.
Direct Deposit (Line 30)
Opt for direct deposit by providing routing and account numbers—recommended for faster refunds.
Attach all required documents, such as copies of your tax return’s first two pages, Schedules D or 3800, Forms 8886, and refigured schedules.
Where to File Form 1139 and Processing Timeline?
Submit to your designated IRS Service Center (based on your filing location—not with your tax return). The IRS aims to process within 90 days from the later of your filing date or the loss year’s return due date. Refunds are tentative; if overstated, penalties and interest may apply. If disallowed, file Form 1120X for a formal claim.
Special Rules, Cautions, and Alternatives
- NOL Definitions: Adjusted for exclusions like prior NOLs, dividends-received deductions, and Section 199A/250 deductions.
- Farming and Insurance Losses: 2-year carryback; 20-year carryforward for insurance.
- Consolidated Returns: Refunds go to the common parent.
- Alternatives: Use Form 1120X for non-qualifying carrybacks or if you miss the 12-month window (3-year statute of limitations).
- Penalties: Avoid math errors or omissions to prevent disallowance.
For large print versions or additional help, check IRS resources.
Conclusion: Maximize Your Tentative Refund with Proper Preparation
Navigating IRS Form 1139 can unlock significant tax relief for corporations facing losses or excess credits. By adhering to the updated 2025 instructions and filing promptly, you can expedite refunds and improve cash flow. Always consult a tax professional for complex scenarios, and keep records for potential IRS reviews. For the latest form and instructions, visit the official IRS website. Stay informed on tax changes to ensure compliance and optimize your corporate tax strategy in 2026 and beyond.