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CIT-139
WEST VIRGINIA CORPORATION APPLICATION FOR REFUND FROM CARRYBACK
OF NET OPERATING LOSS INSTRUCTIONS

GENERAL INSTRUCTIONS STATUTORY LIMITATION FOR FILING A CLAIM
Use Form CIT-139 to claim a refund resulting from the carryback Your claim for refund must be ledﬁwithin 3 years from the
of a net operating loss to previous years. Losses arising from unextended due date of the West Virginia Corporate Income Tax
taxable years beginning after August 5, 1997 can be carried back Return for the period in which the net operating loss occurred.
two years and carried forward 20 years. A corporation may elect to
carry forward a net operating loss instead of ﬁrst carrying it back by INTEREST PAYABLE ON REFUND CLAIMS
attaching a statement to this eﬀect on a timely ﬁled return (including WV CODE §11-10-17(E)(2)
any extensions) for the year of the loss. Once this election is made,
it is irrevocable for that tax year Interest is not payable when a Corporate Income Tax refund check
has been requested by the tax commissioner within 6 months of the
CARES ACT date a claim for refund is ﬁled.
The CARES Act modi ﬁed the NOL treatment of the Tax Cuts and
Jobs Act of 2017 (TCJA). These changes included waiving the SUPPORTING FORMS REQUIRED
carryback period in the case of a NOL arising in a taxable year To expedite the processing of the claim for refund, attach a signed
beginning after Dec. 31, 2017, and before Jan. 1, 2021 to allow copy of your West Virginia combined Corporate Income Tax Return
for a 5-year carryback. NOL arising from outside of the designated (Form CIT-120) for the loss year. Do not attach Form CIT-139
periods should follow the rules de nedﬁin the next section. The
to your original return for the year of the loss This will delay the
limitation of the carryback to $300,000.00 remains in e ect ﬀin
processing of your claim for refund.
all cases. For more guidance related to this provision, refer to
Administrative Notice 2021-17. CHANGES DUE TO FEDERAL AUDIT ADJUSTMENTS
ILLUSTRATION: ABC Corporation, Inc. is a calendar year If you are ﬁling this claim to adjust a previous net operating loss
taxpayer. The company incurs a $350,000.00 Net Operating carryback that has now changed due to federal audit adjustments
Loss (NOL) in the year ending 12/31/2018. The loss limitation is for either the year of the loss or the year to which the loss has
$300,000.00. Because the loss was incurred in a period covered by been carried back, you must provide detailed information about the
the CARES Act, the loss can be carried back for 5 years. Taxpayer
federal audit changes and how it aﬀects the loss carryback.
had a $75,000.00 loss for the 2013 tax period, $150,000.00 for
the 2014 tax period, $100,000.00 each for 2015, 2016 and 2017 WEST VIRGINIA CAPITAL LOSS CARRYBACKS
tax periods. The NOL Carryback would cover all of the 2013 and
2014 tax periods but only $75,000.00 of the 2015 tax period. The West Virginia law does not provide for a West Virginia capital loss
remaining $25,000.00 from 2015 tax period along with the 2016 and carryback; however, West Virginia does allow federal adjustments
2017 tax periods would not be covered by the NOL carryback from to arrive at adjusted West Virginia taxable income and one of those
2018. The remaining $50,000.00 of loss can be carried forward adjustments would be a federal capital loss carryback. Therefore,
until completely used. West Virginia would allow the capital loss carryback at the federal
level to arrive at adjusted federal taxable income. This method is
LIMITATION ON NET OPERATING LOSS CARRYBACKS
di ﬀerent than the West Virginia net operating loss carryback which
Legislative changes made during 1993 (Senate Bill 463) limits the is computed separately for West Virginia. You should compute the
amount of net operating loss that can be carried back from any capital loss carryback on Form CIT-120 marked amended.
taxable year beginning after December 31, 1992. For taxable years
beginning after December 31, 1992, taxpayers can carry back NET OPERATING LOSS DEDUCTION
to the preceding taxable years no more than $300,000 00 of net WV CODE §11-24-6(D)
operating loss. Any amount remaining after the carryback may be
West Virginia Corporate Income Tax law allows as a deduction
carried forward.
for the taxable year an amount equal to the aggregate of (1) the
ILLUSTRATION: XYZ corporation is a ﬁscal year taxpayer. For its West Virginia net operating loss carryovers to such year plus (2)
tax period ending on June 30, 2020, it incurs a $5 million West the net operating loss carryback to such year. A “West Virginia
Virginia net operating loss. In each of its preceding 5 taxable net operating loss deduction” is calculated in accordance with the
years, XYZ corporation reported West Virginia taxable income of provisions of Section 172 of the Internal Revenue Code of 1986, as
$200,000.00. Under the changes from the TCJA, only $300,000 00 amended. For treatment of net operating loss carryovers in certain
of the loss may be carried back. $200,000.00 can be carried back corporate acquisitions and for special limitation on net operating
to the tax period ending on June 30, 2015 and $100,000.00 can loss carryovers in case of a corporate change of ownership,
be carried back to the tax period ending on June 30, 2016. None Sections 381 and 382 of the Internal Revenue Code of 1986, as
of the loss may be carried back to the tax periods ending on June amended, apply.
30, 2017, June 30, 2018 or June 30, 2019. The rest of the loss,
$4,700,000 00, is available to be carried forward to tax years that For a multi-state corporation, the net operating loss deduction
begin after December 31, 2019, until used. There is no longer a cap shall be made allocation and apportionment of the net income to
on the carryforward period. West Virginia. The carryback shall be West Virginia net operating
WEST VIRGINIA STATE TAX DEPARTMENT
CNF-139 Instructions — Rev. 8/2021 Page 1 of 2

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loss carried back to West Virginia taxable income. SPECIFIC INSTRUCTIONS
The West Virginia net operating loss deduction is limited to net Line 1 Enter the year of the net operating loss.
operating losses incurred by a corporation which performed
business in West Virginia and ledﬁ combined Corporate Income Line 2 Enter the amount of West Virginia net operating loss for
Tax Returns in prior taxable years. the loss year
The amount of net operating loss deduction available to an Line 3 $300,000 00
a ﬃliated group which elects for the ﬁrst time to ﬁle a consolidated
West Virginia Corporate Income Tax Return, for a taxable year Line 4 Loss eligible for carryback.
ending after July 1, 1988, is limited to the net operating losses
incurred by members of the a ﬃliated group which did business in COLUMNS (A) THROUGH (E)
West Virginia and ﬁ led separate West Virginia returns in prior years.
Enter the appropriate ﬁgures for all lines after the loss carryback
A West Virginia net operating loss deduction will not be allowed for beginning with the oldest period.
net operating losses of those members of the a ﬃ liated group which
Line 5 Enter the Net Taxable Income as appropriate.
did no business in West Virginia in prior taxable years and were
not required to ﬁle West Virginia Combined Corporate Income Tax Line 6 Enter the maximum amount of NOL Carried back to that year.
Returns.
Line 7 Subtract Line 6 from Line 5
For tax years beginning on or after January 1, 2009, any taxpayer
engaged in a unitary business with one or more other corporations Line 8 To calculate the net income tax after the net operating
shall ﬁle a combined report which includes the income, allocation loss carryback, you must refer to the original tax return.
and apportionment of income of all corporations that are members Recalculate the net income tax using the tax computation
of the unitary group. West Virginia computes net operating loss on schedule included with your original return Attach the
a post-apportionment basis. NOL’s can only be carried backwards recalculation of the net income tax to this form.
to be applied against the West Virginia source income of the
combined group member to which it is attributable. NOL’s that were Line 9 You cannot use this form (CIT-139) if you still have net
incurred by an entity in a period in which the entity ﬁled separately, income tax due after the loss carryback and you are
cannot be used by other members of the combined group. There is entitled to claim tax credits. An amended return must
an exception for NOL’s earned when the taxpayer was lingﬁ on a be ﬁled in order to claim a carryback refund. You must
consolidated basis. Those NOL’s can be carried over and applied recalculate the tax credit that you are eligible to claim
against the income of any former member of the consolidated after the loss carryback by using the appropriate tax credit
group. schedule. Attach copies of both the original and amended
tax credit schedules to the amended return. Please note
DO NOT USE THIS FORM IF YOUR WV FILING METHOD IS on the amended return that it is being amended in order to
COMBINED. Combined ﬁlers must submit an amended CIT-120 to claim a refund as a result of carrying back a Net Operating
claim a refund from carryback of a net operating loss. Loss.
The separate return limitation (SRLY) rules set forth in Treasury Line 10 Subtract line 8 from line 9.
Regulation §1 1502 apply in determining the allowable West Virginia
net operating loss deduction. Line 11 Enter the net payments made. This is the sum of the total
When the SRLY rules apply, a member of an a ﬃliated group’s net previous payments made for the taxable year less total
operating loss carried forward from its separate return year can previous refunds and carry forward credits (which cannot
only o ﬀset that portion of the taxable income attributable to that be changed).
member of the group. Line 12 If line 11 is larger than line 10 enter thatﬀdi erence on line 12.
Line 13 Add lines 12(A) through 12(E).
If you have any questions about the West Virginia Corporate
Income Tax or net operating loss deductions, please contact our
Taxpayer Services Division at one of the following numbers:
Telephone: (304) 558-3333 or
Toll free within West Virginia (800) 982-8297
TDD service for the hearing impaired 1-800-282-9833

WEST VIRGINIA STATE TAX DEPARTMENT
CNF-139 Instructions — Rev. 8/2021 Page 2 of 2

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