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Form 1138 (Rev. 9-2016) Page 2
General Instructions Line 2. The amount of the expected NOL must be based on all of
the facts relating to the operation of the corporation. Consider the
Section references are to the Internal Revenue Code unless following items when estimating the amount of the expected NOL.
otherwise noted. 1. The number and dollar amounts of the corporation’s
Future developments. For the latest information about Government contracts that have been canceled,
developments related to Form 1138 and its instructions, such as 2. Profit and loss statements, and
legislation enacted after they were published, go to
www.irs.gov/form1138. 3. Other factors peculiar to the corporation’s operations.
Purpose of form. A corporation that expects a net operating loss See section 172 to help determine the amount of the expected
(NOL) in the current tax year can file Form 1138 to extend the time NOL. Limitations apply to (a) the amount of taxable income of a new
for payment of tax for the immediately preceding tax year. This loss corporation for any tax year ending after an ownership change
includes extending the time for payment of a tax deficiency. The that may be offset by any pre-change NOLs and (b) the use of
payment of tax that can be postponed cannot exceed the expected preacquisition losses of one corporation to offset recognized built-in
overpayment from the carryback of the NOL. gains of another corporation. For more information, see sections
382 and 384 and the related regulations.
Only payments of tax that are required to be paid after the filing of
Form 1138 are eligible for extension. Do not file this form if all the Line 3. Enter the reduction of previously determined tax
required payments have been paid or were required to have been attributable to the carryback, for tax years before the tax year of
paid. the NOL. Previously determined tax is generally:
If the corporation previously filed Form 1138 and later finds 1. The amount shown on the return, plus any amounts assessed
information that will change the amount of the expected NOL, the as deficiencies before Form 1138 is filed, minus
corporation can file a revised Form 1138. If the amount of the NOL
is increased based on the new information, the corporation can 2. Any abatements, credits, or refunds allowed or made before
postpone the payment of a larger amount of tax as long as the Form 1138 is filed.
larger amount has not yet been paid or is not yet required to be See section 1314(a).
paid. If the amount of the NOL is reduced because of the new Attach a schedule showing how the reduction was figured. See
information, the corporation must pay the tax to the extent that the the instructions for the corporate income tax return for information
amount of tax postponed on the original filing exceeds the amount on figuring the NOL deduction and recomputing the tax.
of tax postponed on the revised filing.
Line 6a. For the year shown on line 4, enter on line 6a the total of:
When and where to file. File Form 1138 after the start of the tax
year of the expected NOL but before the tax of the preceding tax 1. The total tax shown on the return, plus
year is required to be paid. Generally, file Form 1138 with the 2. Any amount assessed as a deficiency (or as interest or a
Internal Revenue Service Center where the corporation files its penalty) prior to the filing of this Form 1138.
income tax return. Line 6b. Enter the total of the following.
A corporation can file Form 1138 separately or with Form 7004, 1. The amount of tax paid or required to be paid before the date
Application for Automatic Extension of Time To File Certain this form is filed. This includes any amount assessed as a deficiency
Business Income Tax, Information, and Other Returns. If Form 1138 or as interest or a penalty if this form is filed more than 21 calendar
and Form 7004 are filed together, Form 1138 will reduce or days after notice and demand for payment was made (more than 10
eliminate the amount of tax to be deposited when Form 7004 is business days if the amount for which the notice and demand for
filed. If Form 1138 is filed with Form 7004, then file Form 1138 with payment was made equals or exceeds $100,000). An amount of tax
the Internal Revenue Service Center at the applicable address for which the corporation has received an extension of time to pay
where the corporation files Form 7004. (under section 6161) is not considered required to be paid before
Period of extension. In general, the extension for paying the tax the end of the extension, plus
expires at the end of the month in which the return for the tax year 2. The amount of refunds, credits, and abatements made before
of the expected NOL is required to be filed (including extensions). the date this form is filed.
The corporation can further extend the time for payment by filing
Form 1139, Corporation Application for Tentative Refund, before the
period of extension ends. See the instructions for Form 1139. The Paperwork Reduction Act Notice. We ask for the information on
period will be further extended until the date the IRS informs the this form to carry out the Internal Revenue laws of the United
corporation that it has allowed or disallowed the application in States. You are required to give us the information. We need it to
whole or in part. ensure that you are complying with these laws and to allow us to
figure and collect the right amount of tax.
Termination of extension. The IRS can terminate the extension
if it believes that any part of the form contains erroneous or You are not required to provide the information requested on a
unreasonable information. The IRS can also terminate the form that is subject to the Paperwork Reduction Act unless the
extension if it believes it may not be able to collect the tax. form displays a valid OMB control number. Books or records
relating to a form or its instructions must be retained as long as
Interest. Interest is charged on postponed amounts from the dates their contents may become material in the administration of any
that the payments would normally be due. The interest is figured at Internal Revenue law. Generally, tax returns and return information
the underpayment rate specified in section 6621. are confidential, as required by section 6103.
The time needed to complete and file this form will vary
Specific Instructions depending on individual circumstances. The estimated burden for
Address. Include the suite, room, or other unit number after the business taxpayers filing this form is approved under OMB control
street address. If the post office does not deliver mail to the street number 1545-0123 and is included in the estimates shown in the
address and the corporation has a P.O. box, show the box number instructions for their business income tax return.
instead. If you have comments concerning the accuracy of these time
If the corporation receives its mail in care of a third party, such as estimates or suggestions for making this form simpler, we would be
an accountant or attorney, enter on the street address line “C/O” happy to hear from you. You can send us comments from
followed by the third party’s name and street address or P.O. box. www.irs.gov/formspubs. Click on “More Information” and then click
If the corporation's address is outside the United States or its on “Give us feedback.” Or you can send your comments to: Internal
possessions or territories, fill in the line for “City or town, state, and Revenue Service, Tax Forms and Publications Division, 1111
ZIP code” in the following order: city, province or state, and Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not
country. Follow the foreign country’s practice for entering the postal send Form 1138 to this office. Instead, see When and where to file,
code, if any. Do not abbreviate the country name. earlier.
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