26 U.S.C. § 6411: Tentative carryback and refund adjustments

§ 1.6411-1 Tentative carryback adjustments.§ 1.6411-2 Computation of tentative carryback adjustment.§ 1.6411-3 Allowance of adjustments.§ 1.6411-4 Consolidated groups.§ 5.6411-1 Tentative refund under claim of right adjustment.§ 301.6411-1 Tentative carryback adjustments.

Amended 1971, 1978

1978 Pub. L. 95-600 Pub. L. 95–600, § 504(b)(1)(A), inserted “and refund” after “carryback” in section catchline.
1971 Pub. L. 92-178 Pub. L. 92–178, § 601(e)(1)(A), substituted “unused investment credit, or unused work incentive program credit” for “or unused investment credit” wherever appearing in subsecs. (a), (a)(1), (b), and (c).

Cases: Jefferson Smurfit Corp. v. United States, 439 F.3d 448 (8th Cir. 2006); Midland Mortg. Co. v. Commissioner, 73 T.C. 902 (1980); Union Equity Cooperative Exchange v. Commissioner, 58 T.C. 397 (1972)

Forms: Form 1139; Form 1045

Final rules 2

(a) Application for adjustment A taxpayer may file an application for a tentative carryback adjustment of the tax for the prior taxable year affected by a net operating loss carryback provided in section 172(b), by a business credit carryback provided in section 39, or by a capital loss carryback provided in subsection (a)(1) or (c) of section 1212, from any taxable year. The application shall be verified in the manner prescribed by section 6065 in the case of a return of such taxpayer and shall be filed, on or after the date of filing for the return for the taxable year of the net operating loss, net capital loss, or unused business credit from which the carryback results and within a period of 12 months after such taxable year or, with respect to any portion of a business credit carryback attributable to a net operating loss carryback or a net capital loss carryback from a subsequent taxable year, in the manner and form required by regulations prescribed by the Secretary. The applications shall set forth in such detail and with such supporting data and explanation as such regulations shall require—

Amended 1966, 1967, 1969, 1971, 1976, 1977, 1980, 1981, 1984, 1986, 2000, 2005

2005 Pub. L. 109-135 Pub. L. 109–135 substituted “6611(f)(4)(B)” for “6611(f)(3)(B)” in concluding provisions.
2000 Pub. L. 106-554 Pub. L. 106–554 substituted “subsection (a)(1) or (c) of section 1212” for “section 1212(a)(1)” in introductory provisions.
1986 Pub. L. 99-514 Pub. L. 99–514, § 231(d)(3)(H), in introductory provisions, struck out “by a research credit carryback provided in section 30(g)(2)” after “carryback provided in section 39,”, “unused research credit,” after “net capital loss,”, “a research credit carryback or” after “with respect to any portion of”, and “(or, with respect to any portion of a business credit carryback attributable to a research credit carryback from a subsequent taxable year within a period of 12 months from the end of such subsequent taxable year)” after “such subsequent taxable year”, and in par. (1), struck out “unused research credit,” after “net capital loss,”.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1847(b)(10), substituted “unused research credit, or unused business credit” for “or unused business credit”.
1984 Pub. L. 98-369 Pub. L. 98–369, § 474(r)(37)(A), amended provisions preceding par. (1) generally. Prior to amendment, such provisions read as follows: “A taxpayer may file an application for a tentative carryback adjustment of the tax for the prior taxable year affected by a net operating loss carryback provided in section 172(b), by an investment credit carryback provided in section 46(b), by a work incentive program carryback provided in section 50A(b), by a new employee credit carryback provided in section 53(b), by a research credit carryback provided in section 44F(g)(2) by an employee stock ownership credit carryback provided by section 44G(b)(2), or by a capital loss carryback provided in section 1212(a)(1), from any taxable year. The application shall be verified in the manner prescribed by section 6065 in the case of a return of such taxpayer, and shall be filed, on or after the date of filing of the return for the taxable year of the net operating loss, net capital loss, unused investment credit, unused work incentive program credit, unused new employee credit, unused research credit, or unused employee stock ownership credit, from which the carryback results and within a period of 12 months from the end of such taxable year (or, with respect to any portion of an investment credit carryback, a work incentive program carryback, a new employee credit carryback, a research credit carryback, or employee stock ownership credit carryback from a taxable year attributable to a net operating loss carryback or a capital loss carryback (or, in the case of a work incentive program carryback, to an investment credit carryback, or, in the case of a new employee credit carryback, to an investment credit carryback or a work incentive program carryback, or, in the case of a research credit carryback, to an investment credit carryback, a work incentive program carryback, or a new employee credit carryback, or, in the case of an employee stock ownership credit carryback, to an investment credit carryback, a new employee credit carryback or a research and experimental credit carryback) from a subsequent taxable year, within a period of 12 months from the end of such subsequent taxable year), in the manner and form required by regulations prescribed by the Secretary. The application shall set forth in such detail and with such supporting data and explanation as such regulations shall require—”.
1984 Pub. L. 98-369 Pub. L. 98–369, § 714(n)(2)(B), in provisions following par. (6), substituted “Except for purposes of applying section 6611(f)(3)(B), an application” for “An application”.
1981 Pub. L. 97-34 Pub. L. 97–34, § 331(d)(2)(B), inserted in introductory provisions “by an employee stock ownership credit carryback provided by section 44G(b)(2)” after “section 44F(g)(2),” and substituted “unused research credit, or unused employee stock ownership credit” for “or unused research credit”, “a research credit carryback, or employee stock ownership credit carryback” for “or a research credit carryback”, and “new employee credit carryback, or, in the case of an employee stock ownership credit carryback, to an investment credit carryback, a new employee credit carryback or a research and experimental credit carryback)” for “new employee credit carryback)” and in par. (1) substituted “unused research credit, or unused employee stock ownership credit” for “or unused research credit”.
1981 Pub. L. 97-34 Pub. L. 97–34, § 221(b)(2)(B), inserted in introductory provision “by a research credit carryback provided in section 44F(g)(2),” after “section 53(b),” and substituted “unused new employee credit, or unused research credit” for “or unused new employee credit”, “a new employee credit carryback, or a research credit carryback” for “or a new employee credit carryback”, and “work incentive program carryback, or, in the case of a research credit carryback, to an investment credit carryback, a work incentive program carryback, or new employee credit carryback)” for “work incentive program carryback)” and in par. (1) substituted “unused new employee credit, or unused research credit” for “or unused new employee credit”.
1980 Pub. L. 96-222 Pub. L. 96–222, § 103(a)(6)(G)(xiii), substituted “section 53(b)” for “section 53(c)”.
1977 Pub. L. 95-30 Pub. L. 95–30, § 202(d)(5)(A)(i) to (iv), inserted references to unused new employee credits and to new employee credit carrybacks in provisions preceding par. (1) and in par. (1).
1976 Pub. L. 94-455 Pub. L. 94–455, §§ 1906(b)(13)(A), 2107(g)(1), struck out “or his delegate” after “Secretary” and inserted “(or, in the case of a work incentive program carryback, to an investment credit carryback)” after “capital loss carryback” in second sentence.
1971 Pub. L. 92-178 Pub. L. 92–178, § 601(e)(1)(B) and (C), inserted “by a work incentive program carryback provided in section 50A(b),” after “section 46(b),” in first sentence, and “or a work incentive program carryback” after “investment credit carryback” in second sentence, respectively.
1969 Pub. L. 91-172 Pub. L. 91–172, § 512(d)(1), (2), provided quick refund procedure, presently available in case of net operating loss carrybacks, to be made available in the case of the 3-year capital loss carryback, and substituted “net operating loss, net capital loss, or unused investment credit” for “net operating loss or unused investment credit” in par. (1).
1967 Pub. L. 90-225 Pub. L. 90–225 inserted “(or, with respect to any portion of an investment credit carryback from a taxable year attributable to a net operating loss carryback from a subsequent taxable year, within a period of 12 months from the end of such subsequent taxable year)” after “within a period of 12 months from the end of such taxable year”.
1966 Pub. L. 89-721 Pub. L. 89–721, § 2(a)–(c), provided in introductory text for a tentative carryback adjustment based on an investment credit carryback as provided for in section 46(b) of this title and inserted “or unused investment credit” after “the taxable year of the net operating loss”, inserted in par. (1) “or unused investment” after “net operating loss”, and struck out in par. (5) “of such loss” and inserted in lieu thereof “from which the carryback is made”.

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(1) The amount of the net operating loss, net capital loss, or unused business credit;

Amended 1984

1984 Pub. L. 98-369 Pub. L. 98–369, § 474(r)(37)(A), substituted “unused research credit, or unused business credit” for “unused investment credit, unused work incentive program credit, unused new employee credit, unused research credit, or unused employee stock ownership credit”.

(2) The amount of the tax previously determined for the prior taxable year affected by such carryback, the tax previously determined being ascertained in accordance with the method prescribed in section 1314(a);

(3) The amount of decrease in such tax, attributable to such carryback, such decrease being determined by applying the carryback in the manner provided by law to the items on the basis of which such tax was determined;

(4) The unpaid amount of such tax, not including any amount required to be shown under paragraph (5);

(5) The amount, with respect to the tax for the taxable year immediately preceding the taxable year from which the carryback is made, as to which an extension of time for payment under section 6164 is in effect; and

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(6) Such other information for purposes of carrying out the provisions of this section as may be required by such regulations.

Except for purposes of applying section 6611(f)(4)(B), an application under this subsection shall not constitute a claim for credit or refund.

(b) Allowance of adjustments Within a period of 90 days from the date on which an application for a tentative carryback adjustment is filed under subsection (a), or from the last day of the month in which falls the last date prescribed by law (including any extension of time granted the taxpayer) for filing the return for the taxable year of the net operating loss, net capital loss, or unused business credit from which such carryback results, whichever is the later, the Secretary shall make, to the extent he deems practicable in such period, a limited examination of the application, to discover omissions and errors of computation therein, and shall determine the amount of the decrease in the tax attributable to such carryback upon the basis of the application and the examination, except that the Secretary may disallow, without further action, any application which he finds contains errors of computation which he deems cannot be corrected by him within such 90-day period or material omissions. Such decrease shall be applied against any unpaid amount of the tax decreased (including any amount of such tax as to which an extension of time under section 6164 is in effect) and any remainder shall be credited against any unsatisfied amount of any tax for the taxable year immediately preceding the taxable year of the net operating loss, net capital loss, or unused business credit the time for payment of which tax is extended under section 6164. Any remainder shall, within such 90-day period, be either credited against any tax or installment thereof then due from the taxpayer, or refunded to the taxpayer.

Amended 1966, 1969, 1976, 1977, 1981, 1984, 1986

1986 Pub. L. 99-514 Pub. L. 99–514, § 231(d)(3)(H)(iv), struck out “unused research credit,” after “net capital loss,”, in two places.
1984 Pub. L. 98-369 Pub. L. 98–369, § 474(r)(37)(B), substituted “unused research credit, or unused business credit” for “unused investment credit, unused work incentive program credit, unused new employee credit, unused research credit, or unused employee stock ownership credit” wherever appearing.
1981 Pub. L. 97-34 Pub. L. 97–34, § 331(d)(2)(B)(i), substituted “unused research credit, or unused employee stock ownership credit” for “or unused research credit”.
1981 Pub. L. 97-34 Pub. L. 97–34, § 221(b)(2)(B)(i), substituted “unused new employee credit, or unused research credit” for “or unused new employee credit”.
1977 Pub. L. 95-30 Pub. L. 95–30, § 202(d)(5)(A)(i), inserted references to unused new employee credits.
1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary” wherever appearing.
1969 Pub. L. 91-172 Pub. L. 91–172, § 512(d)(2), substituted “net operating loss, net capital loss, or unused investment credit” for “net operating loss or unused investment credit” wherever such term appears.
1966 Pub. L. 89-721 Pub. L. 89–721, § 2(d), inserted “or unused investment credit” after “net operating loss” in two places.

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(c) Consolidated returns If the corporation seeking a tentative carryback adjustment under this section, made or was required to make a consolidated return, either for the taxable year within which the net operating loss, net capital loss, or unused business credit arises, or for the preceding taxable year affected by such loss or credit, the provisions of this section shall apply only to such extent and subject to such conditions, limitations, and exceptions as the Secretary may by regulations prescribe.

Amended 1966, 1969, 1976, 1977, 1981, 1984, 1988

1988 Pub. L. 100-647 Pub. L. 100–647 struck out “unused research credit,” after “net capital loss,”.
1984 Pub. L. 98-369 Pub. L. 98–369, § 474(r)(37)(B), substituted “unused research credit, or unused business credit” for “unused investment credit, unused work incentive program credit, unused new employee credit, unused research credit, or unused employee stock ownership credit” wherever appearing.
1981 Pub. L. 97-34 Pub. L. 97–34, § 331(d)(2)(B)(i), substituted “unused research credit, or unused employee stock ownership credit” for “or unused research credit”.
1981 Pub. L. 97-34 Pub. L. 97–34, § 221(b)(2)(B)(i), substituted “unused new employee credit, or unused research credit” for “or unused new employee credit”.
1977 Pub. L. 95-30 Pub. L. 95–30, § 202(d)(5)(A)(i), inserted references to unused new employee credits.
1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary” wherever appearing.
1969 Pub. L. 91-172 Pub. L. 91–172, § 512(d)(2), substituted “net operating loss, net capital loss, or unused investment credit” for “net operating loss or unused investment credit”.
1966 Pub. L. 89-721 Pub. L. 89–721, § 2(d), (e), inserted “or unused investment credit” after “net operating loss” and “or credit” after “such loss”.

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(d) Tentative refund of tax under claim of right adjustment

Amended 1978

1978 Pub. L. 95-600 Pub. L. 95–600, § 504(a), added subsec. (d).

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(1) Application A taxpayer may file an application for a tentative refund of any amount treated as an overpayment of tax for the taxable year under section 1341(b)(1). Such application shall be in such manner and form as the Secretary may prescribe by regulation and shall—

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(A) be verified in the same manner as an application under subsection (a),

(B) be filed during the period beginning on the date of filing the return for such taxable year and ending on the date 12 months from the last day of such taxable year, and

(i) the amount of the tax for such taxable year computed without regard to the deduction described in section 1341(a)(2),

(ii) the amount of the tax for all prior taxable years for which the decrease in tax provided in section 1341(a)(5)(B) was computed,

(iii) the amount determined under section 1341(a)(5)(B),

(iv) the amount of the overpayment determined under section 1341(b)(1); and

(v) such other information as the Secretary may require.

(2) Allowance of adjustments Within a period of 90 days from the date on which an application is filed under paragraph (1) or from the date of the overpayment (determined under section 1341(b)(1)), whichever is later, the Secretary shall—

Amended 1980

1980 Pub. L. 96-222 Pub. L. 96–222, § 105(a)(2), substituted “the date of the overpayment (determined under section 1341(b)(1))” for “the last day of the month in which falls the last date prescribed by law (including any extension of time granted the taxpayer) for filing the return for taxable year in which the overpayment occurs”.

(A) review the application,

(B) determine the amount of the overpayment, and

in a manner similar to the manner provided in subsection (b).

(3) Consolidated returns The provisions of subsection (c) shall apply to an adjustment under this subsection to the same extent and manner as the Secretary may by regulations provide.