Has anyone filed Form 1139 for their client?

[ILLMAS]

FYI the IRS is starting to audit years where form 1139 was used, in addition the years of losses claimed on form 1139 are also audit, no matter if the statue of limitation has expired.

[joanmcq]

What's form 1139?

[ILLMAS]

Direct from Taxmama's mouth

http://youtube.com/watch?v=li3RUWUJY3Q

[Lynn EA USTCP in Louisiana]

claim for tentative refund on a corporate return

[BHoffman]

I was going to ask your thoughts on form 1139 vs. 1120X for a corporate loss carry back.  I would rather file the 1120X.  Any advice?

Thanks!

[jklcpa]

25 minutes ago, BHoffman said:

I was going to ask your thoughts on form 1139 vs. 1120X for a corporate loss carry back.  I would rather file the 1120X.  Any advice?

Thanks!

The 1139 is a request for a tentative (quick) refund and must be filed within one year instead of the longer 3 year period allowed for the 1120X, and with the 1139 the IRS is supposed to act on it within 90 days. The 1120X is a claim for refund (not tentative) and the tentative vs actual claim comes with differences related to the SOL.   Rather than me explain it all out, I've included links to two articles that explain it better than any summary I'd give here. The articles are older and the carryback period allowed has changed, but the basic differences and effect of using one or the other of the forms hasn't.

Article from The Tax Advisor (and also has a linked "exhibit" summarizing some of the differences in the last line of second section entitled "Background" : http://www.thetaxadviser.com/issues/2010/mar/nolcarrybackclaimscanunlockclosedstatuteoflimitationyears.html

Article from The Free Library online: https://www.thefreelibrary.com/Practitioners+beware+-+use+of+Form+1045+or+1139+may+create+unexpected...-a018973034

[BHoffman]

Thanks Judy!  I'm going to prepare the 1120X