Form 1139

What is the Form 1139

The Form 1139, also known as the Application for Tentative Refund, is a tax form used by corporations to claim a refund for overpayments of estimated tax or to apply for a refund due to a carryback of certain tax attributes. This form is particularly relevant for corporations that have experienced losses in the current year that can be carried back to offset taxes paid in prior years. It is essential for businesses to understand the purpose of this form to ensure they maximize their tax benefits.

Steps to complete the Form 1139

Completing the Form 1139 involves several key steps to ensure accuracy and compliance with IRS requirements. Start by gathering all necessary financial documents, including prior year tax returns and any relevant schedules. Follow these steps:

• Fill in the corporation's name, address, and Employer Identification Number (EIN) at the top of the form.
• Indicate the tax year for which you are applying for a refund.
• Complete the sections detailing the tax attributes being carried back, including any net operating losses or capital losses.
• Calculate the tentative refund amount based on the carryback provisions applicable to your situation.
• Sign and date the form, ensuring that it is filed by the deadline to avoid penalties.

Legal use of the Form 1139

The legal use of Form 1139 is governed by IRS regulations, which stipulate that the form must be filed within a specific timeframe to be valid. Corporations must adhere to the guidelines set forth by the IRS to ensure that the application for a tentative refund is legally binding. This includes proper documentation of losses and adherence to the carryback rules as outlined in the Internal Revenue Code. Failure to comply with these regulations can result in denial of the refund request.

Required Documents

When filing Form 1139, certain documents are required to support your claim for a tentative refund. These documents typically include:

• Prior year tax returns that reflect the overpayment or losses.
• Financial statements that detail the corporation's income and expenses for the current year.
• Schedules or forms that substantiate any carryback claims, such as Form 1120 or Schedule C.
• Any correspondence with the IRS related to previous tax filings that may impact the refund claim.

Filing Deadlines / Important Dates

Understanding the filing deadlines for Form 1139 is crucial for corporations seeking a tentative refund. Generally, Form 1139 must be filed within twelve months of the end of the tax year in which the loss occurred. For example, if a corporation incurs a loss in the tax year ending December 31, it must file Form 1139 by December 31 of the following year. It is important to keep track of these dates to ensure timely submission and avoid potential penalties.

Examples of using the Form 1139

Form 1139 can be utilized in various scenarios where corporations seek to recover taxes due to losses. For instance, a corporation that incurred a significant net operating loss in the current tax year may use Form 1139 to carry back that loss to offset taxable income from the previous two years. This can result in a substantial refund of taxes previously paid. Additionally, businesses that experience capital losses can also apply for refunds using this form, illustrating its versatility in tax planning and recovery.