Form 1045 Application for Tentative Refund
What it is:
How it works (Example):
- The carryback of a net operating loss (that is, using part of a prior year's loss to offset taxes due on profits this year)
- The application of a previously unused general business
- The application of a net section 1256 contracts loss from another year
- An overpayment of tax due to a claim of right adjustment under section 1341(b)(1)
The IRS defines what counts as an eligible loss. For individuals, this includes loss of property arising from fire, storm, shipwreck, other casualty, or theft. For small businesses, losses due to federally declared disasters are eligible.
Why it Matters:
A Form 1045 is a firm that allows individuals, trusts, and estates to apply for tax refunds resulting from certain carrybacks, business tax credits, or certain overpayments.