Department of the Treasury
Internal Revenue Service
Instructions for Form 1045
Application for Tentative Refund
(Section references are to the Internal Revenue Code unless otherwise noted.)
General Instructions What To Attach required to file your 1991 income tax
Attach copies of the following, if
Paperwork Reduction Act applicable, to Form 1045 for the year of Do not mail For m 1045 with your
1991 income tax retur n.
Notice the loss or credit:
● If you are an individual, pages 1 and 2
We ask for the information on this form
of your 1991 Form 1040, and Schedules Allowance of Adjustment
to carry out the Internal Revenue laws of
A and D. The IRS will process this application
the United States. You are required to
give us the information. We need it to ● All Schedules K-1 you received from within 90 days from the later of:
ensure that you are complying with partnerships, S corporations, estates, or ● The date you file the complete
these laws and to allow us to figure and trusts that contribute to the loss or application; or
collect the right amount of tax. credit carryback. ● The last day of the month in which the
The time needed to complete and file ● A copy of the application for extension due date falls (including any extension of
this form will vary depending on of time to file your 1991 income tax time granted) for filing the return for the
individual circumstances. The estimated return, if any. 1991 tax year. (For an overpayment of
average time is: ● Copies of all Forms 8271, Investor tax under section 1341(b)(1), 90 days
Reporting of Tax Shelter Registration from the date of the overpayment.)
Recordkeeping 26 min.
Number, attached to your 1991 return. Before processing certain cases
Learning about the ● Any other form or schedule from involving abusive tax shelter promotions
law or the form 29 min. which the carryback results (such as and before paying refunds, the IRS will
Preparing the form 6 hr., 5 min. Schedule C or F (Form 1040), or Form reduce refunds of investors when
3468, Form 3800, etc.). appropriate, and will offset deficiencies
Copying, assembling, assessed under provisions of section
and sending the In addition, attach copies of forms or
6213(b)(3) against scheduled refunds
form to the IRS 56 min. schedules for items refigured in the
carryback years (such as Form 6251 or resulting from tentative carryback
If you have comments concerning the Form 3468). adjustments under section 6411(b). See
accuracy of these time estimates or Revenue Procedure 84-84, 1984-2 C.B.
suggestions for making this form more All applicable information described 782 and Revenue Ruling 84-175, 1984-2
simple, we would be happy to hear from above must be attached to your C.B. 296.
you. You can write to both the Internal application and all questions on page
The processing of the Form 1045 and
Revenue Service, Washington, DC 1 must be answered. Otherwise, your
Form 1045 will not be processed. the payment of the refund requested
20224, Attention: IRS Reports Clearance does not mean the IRS has accepted
Officer, T:FP; and the Office of the items carried back to previous years
Management and Budget, Paperwork When To File as being correct. If it is later determined
Reduction Project (1545-0098), File Form 1045 within 1 year after the by an examination of the tax return for
Washington, DC 20503. Do not send end of the year in which the NOL, the year of the carryback that the
Form 1045 to either of these offices. unused credit, or claim of right claimed deductions or credits are due to
Instead, see Where To File below. adjustment occurred, but only on or an overstatement of the value of
after the date you file your 1991 return. property, negligence, or substantial
Purpose of Form When an NOL or credit carryback understatement of income tax, you may
If you are an individual, estate, or trust, eliminates or reduces a credit in an have to pay penalties. In addition to
earlier year, you may be able to carry these penalties, any additional tax will
use this form to apply for:
back the released credit 3 more years. also generate interest compounded
● A quick refund of taxes from daily.
carryback of a net operating loss (NOL) See the credit forms for the carryback
or an unused general business credit. years for additional information. Also see We may need to contact you (or your
section 39 and the regulations under authorized representative if you have
● A quick refund of taxes from an one) for more information so we can
overpayment of tax due to a claim of process your application. If you want to
right adjustment under section Since the unused credit created
affects the taxes of a year or years designate a representative for us to
1341(b)(1). contact (for example, your accountant or
before the 3 years preceding the 1991
Note: An NOL may be carried back 3 tax year, use a second Form 1045 for tax return preparer), please attach a
years and forward 15 years. However, copy of your authorization to Form 1045.
the earlier year(s). File the second
you may elect to carry forward a 1991 For this purpose, you may use Form
application also within 1 year after the
net operating loss instead of first 2848, Power of Attorney and Declaration
1991 tax year. To expedite processing,
carrying it back by attaching a statement of Representative, or Form 8821, Tax
file the two Forms 1045 together.
to that effect on a return filed on time Information Authorization.
(including any extensions) for 1991.
Once you make the election, it is Where To File
irrevocable and the carryforward is File Form 1045 with the Internal
limited to 15 years. Revenue Service Center where you are
Cat. No. 13666W
Disallowance of Form 1045 postal code, and the name of the Schedule B on page 3. In column (d),
country. Do not abbreviate the country enter the NOL deduction from Schedule
This application for a tentative carryback name. B, line 1, column (b). In column (f), enter
adjustment is not a claim for credit or the NOL deduction from Schedule B,
refund. Any application may be line 1, column (c).
disallowed if it has material omissions or Line 1a—Net Operating Loss
math errors that cannot be corrected Figure your net operating loss (NOL) on
within the 90-day period. If it is Schedule A, page 2.
disallowed in whole or in part, no suit Carry an NOL back to the 3rd tax year Individuals.—Enter the amount shown
may be brought in any court for the before the loss. Any loss not used in the on, or as previously adjusted for, Form
recovery of that tax. But you may file a 3rd year is carried to the 2nd, and then 1040, line 34 for 1988, 1989, and 1990.
regular claim for credit or refund before the 1st preceding year. Carry a loss not If you used Form 1040A, enter the
the limitation period expires, as applied in the 3 preceding years forward amount from line 16 for 1988 and 1989;
explained below under Form 1040X (or up to 15 years. Special rules apply to line 19 for 1990. If you used Form
Other Amended Return). the part of an NOL related to any 1040EZ, enter the amount from line 4 for
specified liability loss, including product 1988. For 1989 and 1990, enter the
Excessive Allowances liability losses. See section 172(b)(1)(C) amount from line 4 if you checked the
for details. “Yes” box. If you checked the “No” box
Any amount applied, credited, or for 1989, enter $3,100. If you checked
refunded based on this application that If you filed a joint return (or a separate
the “No” box for 1990, enter $3,250.
the IRS later determines to be excessive return) for some, but not all of the tax
may be billed as if it were due to a math years involved in figuring the NOL
or clerical error on the return. carryback, special rules apply in Line 16—Income Tax
computing the NOL deduction. See Pub. For columns (b), (d), and (f), refigure your
536 for the special rules. Attach a
Form 1040X (or Other computation showing how you figured
tax after taking the NOL carryback into
account. Attach a detailed computation.
Amended Return) the carryback. The tax form and instructions for the
Individuals can get a refund by filing applicable year will help you make this
Form 1040X, Amended U.S. Individual Line 1b—Carryback of computation. Include on this line any tax
Income Tax Return, instead of Form Unused General Business from Forms 4970 and 4972.
1045. An estate or trust may file an Computation of tax when the NOL is
amended Form 1041, U.S. Fiduciary Credit fully absorbed in the earliest
Income Tax Return. Generally, you must If you claim a tentative refund based on preceding tax year.—In refiguring your
file Form 1040X (or other amended the carryback of this credit, attach a tax for the year to which the NOL is
return) within 3 years after the due date detailed computation showing how you carried and fully absorbed, determine
of the return for the 1991 tax year. figured the credit carryback, and a the deduction for charitable
If you use Form 1040X or other recomputation of the credit after you contributions without regard to any NOL
amended return, attach a computation apply the carryback. Make the carryback. Any income or other
of your NOL on Schedule A (Form 1045) recomputation on the appropriate credit deductions based on, or limited to, a
and, if applicable, your NOL carryover form for the tax year of the tentative percentage of your adjusted gross
on Schedule B (Form 1045). Complete a allowance. income (such as medical expenses)
separate Form 1040X or other amended If you filed a joint return (or separate must be refigured on the basis of your
return for each year you request an return) for some, but not all of the tax adjusted gross income determined after
adjustment. years involved in figuring the unused you apply the NOL carryback. Also, any
The procedures for Form 1040X differ credit carryback, special rules apply in credits based on, or limited by, the tax
from those for Form 1045. The IRS is computing the carryback. Get the must be refigured on the tax as
not required to process your Form Instructions for Form 3800, General determined after you apply the NOL
1040X within 90 days. However, if we do Business Credit. Attach a computation carryback. See Pub. 536 for more
not process it within 6 months from the showing how you figured the carryback. information and examples.
date you filed it, you may file suit in
court. If we disallow your claim on Form Line 2a—Tax Year Line 17—General Business
1040X, you must file suit no later than 2 Credit
years after the date we disallow it. If the year of the loss, unused credit, or
overpayment under section 1341(b)(1) is Enter any general business credit.
other than the calendar year 1991, Identify the applicable credits.
Additional Information please enter the required information.
For more details on net operating losses, Line 18—Other Credits
get Pub. 536, Net Operating Losses. Lines 9 through 27
See your tax return for the carryback
Enter in columns (a), (c), and (e) the year for any additional credits (such as
Specific Instructions amounts for the applicable carryback credit for child and dependent care
year as shown on your original or expenses, credit for the elderly or the
Address amended return. If the return was disabled, etc.) that will apply in that year.
examined, enter the amounts If there is an entry on this line, identify
P.O. box.—If your post office does not determined as a result of the
deliver mail to your home or office and the credit(s) claimed.
you have a P.O. box, show your P.O. box
instead of your home or office address. Line 21—Recapture Taxes
Line 10—Net Operating Loss
Foreign address.—If your address is Enter the amount shown on your Form
outside of the United States or its Deduction After Carryback 1040, line 50 for 1988, 1989, and 1990.
possessions or territories, enter the In column (b), enter as a positive
information on the line for “City, town or number the NOL from Schedule A, line
post office, state, and ZIP code” in the 25. If the NOL is not fully absorbed in
following order: city, province or state, the 3rd preceding year, complete
Line 22—Alternative theft losses, moving expenses and any If your net operating loss (NOL) is
employee business expenses. more than the taxable income of the
● Standard deduction if you do not earliest year to which it is carried, you
A carryback of an unused credit may itemize. must figure the amount of the NOL that
increase your alternative minimum tax or is to be carried to the next tax year. The
Do not enter business deductions on
first cause you to be liable for it. A amount of the NOL you may carry to the
line 9. These are deductions that are
carryback of an NOL may reduce your next year, after applying it to an earlier
connected with a trade or business.
alternative minimum tax. Use Form 6251 year(s), is the excess, if any, of the NOL
They include the following:
to figure this tax, and attach a copy if carryback over the modified taxable
there is any change to your alternative ● State income tax on business profits. income of that earlier year. Modified
minimum tax liability. ● Deduction for one-half of taxable income is the taxable income of
self-employment tax. the earlier year figured with certain
Line 23—Self-Employment ● Rental losses. modifications.
Tax ● Loss on the sale or exchange of Note: If you carry two or more NOLs to
business real estate or depreciable a tax year, you must deduct them, when
Do not adjust the self-employment tax property. figur ing modified taxable income, in the
because of any carryback. order in which they were incurred. First,
● Your share of a business loss from a
partnership or an S corporation. deduct the NOL from the earliest year,
Line 24—Other Taxes ● Ordinary loss on the sale or exchange
then the NOL from the next earliest year,
and so on. After you deduct each NOL,
See your tax return for the carryback of section 1244 (small business) stock. there will be a new, lower total for
year for any other taxes not mentioned ● Ordinary loss on the sale or exchange modified taxable income to compare
above, such as tax on an IRA, that will of stock in a small business investment with any remaining NOL.
apply in that year. If there is an entry on company operating under the Small
this line, identify the taxes that apply. Business Investment Act of 1958. Line 2
● Loss from the sale of accounts
Line 28—Overpayment of receivable if such accounts arose under The NOL carryback from the 1991 tax
Tax Under Section 1341(b)(1) the accrual method of accounting. year or any later tax year is not allowed.
However, net operating losses, otherwise
If you apply for a tentative refund based ● If you itemized your deductions, allowable as carrybacks or
on an overpayment of tax under section casualty and theft losses are business carryforwards, occurring in tax years
1341(b)(1), enter it on this line. Also deductions even if they involve before 1991, are taken into account in
attach a computation that shows the nonbusiness property. Moving expenses figuring the modified taxable income for
information required in Regulations and employee business expenses (such the earlier year.
section 5.6411-1(d). as union dues, uniforms, tools, and
educational expenses) are also business
deductions. Line 4—Adjustments to
Signature Adjusted Gross Income
Individuals.—Sign and date Form 1045. Line 10—Nonbusiness If you entered an amount on line 3, you
If Form 1045 is filed jointly, both
spouses must sign. Income (Other Than Capital must refigure certain income and
deductions based on adjusted gross
Estates.—All executors must sign and Gains) income. These are:
date Form 1045. This is income that is not from a trade or ● The special allowance for passive
Trusts.—The fiduciary or an authorized business. Examples are dividends, activity losses from rental real estate
representative must sign and date Form annuities, and interest on investments. activities.
1045. Do not enter business income on line ● Taxable social security benefits.
10. This is income from a trade or
● IRA deductions.
Schedule A—Net business. Business income includes the
following: ● Excludable savings bond interest.
Operating Loss (NOL) ● Salaries and wages. For purposes of figuring the
adjustment to each of these items, your
Complete and file this schedule to ● Rental income.
determine the amount of your NOL that adjusted gross income is increased by
● Gain on the sale or exchange of the amount on line 3. Do not take into
is available for carryback or carryover. business real estate or depreciable account your 1991 NOL carryback.
property. Figure the adjustment to each item of
Line 9—Nonbusiness ● Your share of business income from a income or deduction in the order listed
Deductions partnership or an S corporation. above. For purposes of figuring the
These are deductions that are not For more information on business and adjustment to each subsequent item,
connected with a trade or business. nonbusiness income and deductions, increase adjusted gross income by the
They include the following: see Pub. 536. total amount of adjustments you figured
for the previous items.
● IRA deduction.
Enter on line 4 the total adjustments
● Deduction for payments on behalf of a Schedule B—Net made to the listed items. Attach a
self-employed individual to a Keogh
retirement plan or a simplified employee
Operating Loss computation showing how the
adjustments were figured.
pension (SEP) plan. Carryover
● Self-employed health insurance Complete and file this schedule to
Line 5—Adjustment to
determine the amount of your net
● Alimony. operating loss deduction for each Itemized Deductions
● Itemized deductions are usually carryback year and the amount to be Individuals.—Skip this line if for all 3
nonbusiness, except for casualty and carried forward if not fully absorbed in preceding years, you did not itemize
the carryback years. deductions or line 3 is zero or blank.
Otherwise, complete lines 9 through 33
and enter the amount from line 33 on 1. The amount from line 3, Schedule B gross income for this purpose as
line 5. of Form 1045, and follows:
Estates and trusts.—Recompute the 2. The exemption amount from Form 1. Figure the adjustment to each item
miscellaneous itemized deductions you 1041, line 20. that affects and is based on adjusted
deducted on Form 1041, line 15b, and For purposes of figuring casualty or gross income in the same manner as
any casualty or theft losses you claimed theft losses, modified adjusted gross instructed for line 4 of Schedule B,
on Form 4684, Section A, line 18, by income is figured by adding the amount except do not take into account any
substituting modified adjusted gross from line 3, Schedule B of Form 1045, to NOL carrybacks when figuring adjusted
income (see below) for the adjusted the adjusted gross income previously gross income. Attach a computation
gross income of the estate or trust. used to figure these losses. showing how the adjustments were
Subtract the recomputed deductions figured.
and losses from the deductions and 2. Add lines 3, 9, and 18 of Schedule
losses previously claimed, and enter the
B to the total adjustments you figured in
difference on line 5, Schedule B of Form If, for any of the preceding years, you
1045. entered an amount other than zero on
Modified adjusted gross income. For line 18 and you had any items of income
purposes of figuring miscellaneous or deductions based on adjusted gross
itemized deductions subject to the 2% income and listed in the instructions for
floor, modified adjusted gross income is line 4 of Schedule B, do not use the
figured by adding the following amounts amount on line 19 as your adjusted
to the adjusted gross income previously gross income for refiguring charitable
used to figure these deductions: contributions. Instead, figure adjusted