The ability for corporate taxpayers to obtain a quick refund by fi ling IRS Form 1139, Corporation Application for Tentative Refund, is important and can quickly increase a corporation’s cash fl ow in today’s diffi cult economy. As such, being aware of the strict fi ling deadline is critical.
Form 1139 must be fi led within 12 months of the end of the tax year in which a net operating loss, net capital loss or unused credit arose. Therefore, the fi ling deadline to carryback an NOL generated in tax period ended December 31, 2010 is fast approaching and must be fi led with the IRS by December 31, 2011. Due to a recent policy change, the IRS has begun to routinely reject Forms 1139 due to timing issues, minor mathematical calculations and administrative errors, such as omitted schedules.