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21.5.9.2 (10-01-2013) What is a Carryback?

1. A taxpayer who has an overpayment of tax as a result of a Net Operating Loss (NOL), Net Capital Loss (NCL), Unused Credits, or a Claim-of-Right adjustment can file an application or claim, also referred to as a TENT or RINT, for adjustment or refund. The tax year in which the loss occurred is the loss year. The tax year the loss is applied to is the gain year.
   
   
2. Generally, IRS must pay interest if the carryback overpayment is not refunded within 45 days of the later of;
   • The due date of the loss year return
   • The received date of the delinquent loss year return
   • The date the loss year return is filed in processible form
   • The application or claim received date
   • The application or claim processible date
     Note:
     See IRM 20.2.9.2, Determining the Overpayment Interest Period.
     
     
3. A tentative refund (TENT) can be filed on Form 1045, Application for Tentative Refund or Form 1139, Corporation Application for Tentative Refund.
   
   A Form 1045 can be filed by individuals, estates or trusts to apply for a quick tax refund resulting from;
   • the carryback of a Net Operating Loss (NOL),  (2 years back, 20 years forward)
   • the carryback of unused general business credits,  (1 year back, 20 years forward) (5 years back, 24 years forward)
   • the carryback of a net section 1256 contract loss, (3 years back [for an individual only], unlimited years forward)
   • for an overpayment of tax due to a claim of right adjustment under section 1341(b)(1) (5.6411-1)

   
   A Form 1139 can be filed by businesses other than S corporations to apply for a quick tax refund resulting from;

   • the carryback of a NOL or a loss from operations of a life insurance company, (2 years back, 20 years forward)
   • the carryback of a Net Capital Loss (NCL),  (3 years back, 5 years forward)
   • the carryback of unused general business credits or  (1 to 5 years back, 20 to 24 years forward)
   • an overpayment of tax due to a claim of right adjustment under section 1341(b)(1) (5.6411-1)

   
   TENTS must be filed within one year from the end of the loss year and include all necessary documentation to support the requested carryback loss. TENTS are subject to a 90-day statutory processing timeframe which begins when a complete and processible application was filed or the last day of the month that includes the due date (including extensions) for filing the income tax return for the year in which the loss or credit arose. For additional information on the processing of a TENT, see guidance in IRM 21.5.9.5.30, Carryback Form 1045 and Form 1139 Processing and Filing Requirements. through IRM 21.5.9.5.34, Reassessing Carryback Form 1045 and Form 1139.

4. A restricted interest claim (RINT) for a carryback due to a NOL, NCL, unused general business credits, section 1256 contract losses or claim of right is filed on an amended return such as;
   • Form 1040-X, Amended U.S. Individual Income Tax Return,
   • Form 1120X ,Amended U.S. Corporation Income Tax Return,
   • amended Form 1041, U.S. Income Tax Return for Estates and Trusts,
   • amended Form 1120-C, U.S. Income Tax Return for Cooperative Associations, or
   • Form 990-T, Exempt Organization Business Income Tax Return

   
   A RINT is not subject to the 90-day processing timeframe and must generally be filed within 3 years (10 years for carryback of foreign tax credit or deduction) after the due date of the return (including extensions) for the tax year of the NOL, NCL, or unused credit. For additional information on processing RINTS, see IRM 21.5.9.5.37, Carryback Form 1040-X, Form 1120X, Form 1041, Form 1120-C and Form 990-T (RINTS) through IRM 21.5.9.5.43, Reassessing Carryback Form 1040-X, Form 1120X, Form 1041, Form 1120-C, and Form 990-T, for additional information.

5. For more detailed procedures on carrybacks, see;
   • Net Operating Loss (NOL) – See IRM 21.5.9.5.14 Carryback Net Operating Loss (NOL)
   • Unused credits – See IRM 21.5.9.5.6 Carryback Unused Credits
   • Net Capital Loss (NCL) – See IRM 21.5.9.5.25 Net Capital Loss (NCL) – Individuals – Carryback/Carryforward Limitations and IRM 21.5.9.5.26 Net Capital Loss (NCL) – Corporations – Carryback/Carryforward Limitations
   • Claim of Right – See IRM 21.5.9.5.27 Carryback “Claim of Right“