Form 1045, Application for Tentative Refund

This form is for individuals, estates, and trusts with certain types of losses that could qualify them for a tax refund. It’s divided into several schedules, supplementary parts of the form used to calculate the amount of your refund.

  • Personal Information: Name, address, and social security number or employer identification number.

  • Reason for Filing: Here, we indicate why you're applying for a refund, such as a net operating loss (NOL), unused general business credit, or a loss due to section 1256 contracts.

  • Tax Years Involved: Specifies the tax years for which you're claiming the refund.

  • Various Questions: These questions are about specific tax situations that might apply to you, such as if you've filed a petition in Tax Court or if any part of the decrease in tax is due to a reportable transaction.

  • Computation of Decrease in Tax: This part is for calculating how much your tax liability decreased as a result of the reasons you listed above.

  • Signature and Paid Preparer Info: This is where you sign the form, and if you paid someone to prepare the form, they also need to sign here.

  • Schedule A - Net Operating Loss (NOL): If deductions for the year are more than income for the year, you may have a net operating loss (NOL). An NOL can be used to lower your tax in another year.

  • Schedule B - NOL Carryover: Typically, NOLs that originate in tax years after 2020 can only be transported forward to subsequent years. However, there's an exception for specific farming losses, which can be carried back two years.

Form 1045 offers a “tentative” refund because the IRS still needs to approve it. The IRS usually will review the form within 90 days of receipt. Afterwards, it can accept the claim and issue a refund, or deny it.