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Foreign taxes taken as a credit in a prior year can be reduced to zero by the carryback of an NOL or a net capital loss on Form 1139. A corporation must file Form 1120X (or other amended return) instead of Form 1139 to carry back a prior year foreign tax credit released due to an NOL or net capital loss carryback.
A Form 1120X based on a net operating loss carryback, a capital loss carryback, or a general business credit carryback, generally must be filed within 3 years after the due date of the return for the tax year of the net operating loss, capital loss, or unused credit.
To enter a NOL carryback you can choose to select to file a Form 1120-X Amended US Corporation Tax Return for the year you are going to carryback your loss to or file a Form 1139 - Corporation Application for a Tentative Refund.
Form F-1120X may be used to correct a tax return that was previously filed on Form F-1120 or F-1120A. Use Form F-1120X to correct the return as originally filed or as later adjusted by an amended return, a claim for refund, or an examination.
Claiming NOL Deductions The taxpayer can also file a quick carryback claim on Form 1139, Corporation Application for a Tentative Refund, or Form 1045, Application for a Tentative Refund.
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An amended Scorp can be e-filed in much the same way as you e-file Form 1120S or Form 7004. Archive a complete copy of the original return including all forms, schedules, statements, worksheets, etc.
Generally, you are required to carry back any NOL arising in a taxable year beginning in 2018, 2019, or 2020, to each of the five taxable years preceding the taxable year in which the loss arises.
If a reportable transaction results in a loss or credit carried back to a prior tax year, attach Form 8886 for the carryback years. If Form 1120X is used as a carryback claim, attach copies of Form 1120, page 1 and the tax computation page, for both the year the loss or credit originated and for the carryback year.

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