Instructions For Form 1045 - Application For Tentative Refund

for each carryback year. For more

Schedule B to figure the amount to

Additional Information

details, see section 1212(c).

carry to the next carryback year.

For more details on NOLs, see Pub.

Note. You may need to use

536, Net Operating Losses (NOLs)

Line 9

additional Forms 1045 to carry back

for Individuals, Estates, and Trusts.

an NOL. Complete lines 1 through 9

If an NOL or net section 1256

and Schedule A on only one Form

contracts loss carryback eliminates or

1045. Use this Form 1045 for the

reduces a prior year foreign tax

Specific Instructions

earliest preceding tax years. You

credit, you cannot use Form 1045 to

must sign this Form 1045, but do not

carry the released foreign tax credits

need to sign the other Forms 1045.

Address

to earlier years. Also, if the released

foreign tax credits result in the

General rule. You generally must

P.O. box. Enter your box number

release of general business credits,

carry back the entire NOL to the 2nd

only if your post office does not

you cannot use Form 1045 to carry

tax year before the loss year. Any

deliver mail to your street address.

the released general business credits

loss not used in the 2nd preceding

to earlier years. Instead, you must file

year is then carried to the 1st

Foreign address. Enter the

Form 1040X or other amended return

preceding year. Any loss not applied

information in the following order:

to claim refunds for those years. For

in the 2 preceding years can be

City, province or state, and country.

details, see Rev. Rul. 82-154, 1982-2

carried forward up to 20 years. The

Follow the country’s practice for

C.B. 394.

2-year carryback period does not

entering the postal code. Do not

apply to the portion of an NOL

abbreviate the country name.

Lines 10 Through 27—

attributable to an eligible loss, a

farming loss, a qualified GO Zone

Line 1b—Unused

Computation of

loss, or a specified liability loss.

General Business Credit

Decrease in Tax

Eligible losses. To the extent the

If you claim a tentative refund based

NOL is an eligible loss (defined on

Use one pair of columns to enter

on the carryback of an unused

page 1), it is carried back to the 3rd

amounts before and after carryback

general business credit, attach a

tax year before the loss. Any loss not

for each year to which the loss is

detailed computation showing how

used in that year is carried to the 2nd

being carried. Start with the earliest

you figured the credit carryback and a

and then the 1st preceding year. Any

carryback year. A net section 1256

recomputation of the credit after you

such loss that is not applied in the 3

contracts loss can be carried back 3

apply the carryback. Generally, an

preceding years can be carried

years. See the instructions for line 10

unused general business credit can

forward up to 20 years.

on this page to figure the tax years to

be carried back 1 year. Make the

Only the eligible loss portion of the

which you can carry an NOL. Use the

recomputation on Form 3800 (or

NOL can be carried back 3 years.

remaining pairs of columns for each

Form 8844, Form 6478, or Form

consecutive preceding tax year until

Example. You have a $20,000

8835, Section B, if applicable) for the

the loss is fully absorbed. Enter the

NOL of which only $5,000 is an

tax year of the tentative allowance.

ordinal number of years the loss is

eligible loss. The $5,000 eligible loss

If you filed a joint return (or

being carried back and the date the

is carried back 3 years, but the

separate return) for some but not all

carryback year ends in the spaces

remaining $15,000 loss is carried

of the tax years involved in figuring

provided in the headings above line

back only 2 years, although you had

the unused credit carryback, special

10 for each pair of columns.

modified taxable income of more than

rules apply to figuring the carryback.

$5,000 in the 3rd preceding year.

Example. Your tax year is the

See the instructions for Form 3800.

2006 calendar year and you are

Farming losses. To the extent the

carrying an NOL back 2 years. You

NOL is a farming loss (defined on

Line 1c—Net Section

page 1), that part of the loss is

enter “2nd” and “12/31/04” in the left

1256 Contracts Loss

carried back to the 5th tax year

column heading in the spaces

provided. The column heading now

before the loss. Any such loss not

An individual can elect to carry back a

reads “2nd preceding tax year ended

used in that year is carried to the 4th

net section 1256 contracts loss to

preceding year and then applied

12/31/04.”

each of the 3 tax years preceding the

consecutively forward through the 1st

loss year. An estate or trust is not

For each carryback year, enter in

preceding year. Any such loss not

the column labeled “Before

eligible to make this election. To

applied in the 5 preceding years can

carryback” the amounts for the

make the election, check box D at the

be carried forward up to 20 years.

top of Form 6781. The amount which

carryback year as shown on your

Only the farming loss portion of the

original or amended return. If the

can be used in any prior tax year

NOL can be carried back 5 years.

amounts were previously adjusted by

cannot exceed the net section 1256

you or the IRS, enter the amounts

contract gain in that year and cannot

Example. You operate a farming

increase or create an NOL for that

after adjustment.

business and incur an NOL of

year. Reflect the carryback as a

$50,000 for 2006. $25,000 of the

Line 10—NOL Deduction

reduction to your adjusted gross

NOL is attributable to income and

income in the “After carryback”

deductions of your farming business;

After Carryback

column on line 10. Attach to Form

$10,000 is attributable to a fire in your

1045 a copy of Form 6781 and

Use the following rules to figure the

personal residence (an eligible loss);

Schedule D (Form 1040) for the year

tax years to which you must carry an

and the remaining $15,000 is

of the net section 1256 contracts loss

NOL shown on Schedule A, line 25. If

attributable to your spouse’s work as

and an amended Form 6781 and an

an NOL is not fully absorbed in a year

an employee. The $25,000 farming

amended Schedule D (Form 1040)

to which it is carried, complete

loss is carried back 5 years; the

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Instructions For Form 1045 - Application For Tentative Refund - 2006 Page 3

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