K-139: Corporation Application for Refund from Carryback of Net Operating Loss (Revision 2019-08)

Who files this form

Form K-139 is a corporation’s application for a Kansas refund from a net operating loss carryback.

The form’s general information limits how losses may be used:

• For losses incurred in taxable years beginning after December 31, 1987, Kansas allows only a carryforward to the next 10 taxable years. If part of the loss remains unused in the final carryforward year, a refund may be allowed in that year under the calculation described on the form.
• For losses incurred in taxable years beginning before January 1, 1988, the carryback and carryforward amounts and periods depend on the Kansas income tax laws in effect when the loss was incurred.

What you'll need

Have the following information and supporting schedules ready:

• The corporation’s name, principal office address and employer identification number (EIN).
• The loss year’s ending date, net operating loss amount, date the loss-year return was filed and whether that return was a final Kansas return.
• Taxable income, tax liability and refundable credit information for the three preceding taxable years, both as originally filed or last determined and after the carryback.
• Federal supporting schedules, Forms 1139 or 1120X. The form warns that no refund will be issued without federal supporting schedules. If neither federal form was filed, explain the reason in detail on the back of K-139.
• Completed schedules for any refundable tax credits claimed.
• Additional sheets for the net operating loss carryback ratio calculation, if needed.

How to file

1. Enter the corporation’s identifying information and details about the loss year.
2. Complete the tax-decrease calculation for the three preceding taxable years, comparing the liability as filed or last determined with the liability after the carryback. Complete the carryback ratio calculation if necessary.
3. Enclose the required supporting schedules. Complete the officer’s signature, title and date fields and the preparer’s signature, address and date fields.
4. File K-139 separately from your income tax return.

Mail the application to:

Kansas Corporate Income Tax

Kansas Department of Revenue

PO Box 750260

Topeka, KS 66699-0260

Common mistakes

• Leaving out federal support. The form warns that no refund will be issued without federal supporting schedules, Forms 1139 or 1120X. If those forms were not filed, provide a detailed explanation on the back.
• Claiming refundable credits without schedules. You must complete and enclose the applicable schedules for credits entered on line 7.
• Filing K-139 with the income tax return. The form specifically says to file this application separately.
• Treating a capital loss carryback as a Kansas net operating loss carryback. The form directs you to compute the capital loss carryback on Kansas Form K-120 and enclose applicable federal schedules.

Questions people ask

Does Kansas allow an ordinary carryback for losses incurred in taxable years beginning after December 31, 1987?

The general information says these losses may only be carried forward to the next 10 taxable years. It also provides a refund calculation for a loss that remains partly unused in the final carryforward year.

Is the Kansas loss amount simply the full federal net operating loss?

The amount available for Kansas carryforward is the portion of the federal net operating loss allocated to Kansas, after required Kansas modifications and apportionment.

What if I did not file federal Form 1139 or 1120X?

Explain the reason in detail on the back of K-139. The form also warns that no refund will be issued without federal supporting schedules.

Should I use K-139 for a capital loss carryback?

The form directs you to compute a capital loss carryback on Kansas Form K-120 and enclose any applicable federal schedule. It explains that Kansas allows the federal capital loss carryback adjustment when arriving at adjusted federal taxable income, rather than computing it separately as a Kansas net operating loss carryback.

Official sources

• https://www.ksrevenue.gov/pdf/k-139.pdf