i1045 1991

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					                                               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
                                              section 6411.
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.
                                                                                             Line 12—Deductions
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
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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
Minimum Tax
                                              ● 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
                                                                                                                            Page 3
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
                                           Line 20
                                                                                       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

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