What's the current processing time for Form 1045 NOL carryback applications?

Hey tax peeps! So I'm in an interesting situation this year where I need to file a Form 1045 along with my regular 1040. I had a substantial business loss and I'm trying to carry it back against previous tax years under the provisions that are still available. I understand this is different from the temporary expanded NOL provisions we had a few years ago. I spoke with a tax advisor recently who mentioned that these applications are taking forever to process. From what I've read online, the standard processing time is supposed to be around 90 days, but with the IRS backlogs and staffing issues lately, I'm worried this could drag on much longer. Has anyone here recently filed a Form 1045 or had clients who did? What's the actual wait time looking like these days? Is it still somewhat close to that 90-day timeframe, or should I mentally prepare for a wait that could stretch to 6 months or even a year? Really appreciate any insights from folks who've been through this recently!

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22 comments

StarStrider

The processing time for Form 1045 (Application for Tentative Refund) is definitely longer than the standard 90 days right now. I've had several clients file these over the past year, and we're consistently seeing processing times of 5-7 months for most cases. The IRS is still working through backlogs from the past few years, and forms that require manual review like the 1045 are particularly affected. These applications need specialized handling since they involve multiple tax years and calculations for NOL carrybacks.

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StarStrider

Filing Form 1045 is absolutely still worth it if you have qualifying losses. The time value of money still favors getting your refund sooner through the 1045 process rather than only carrying forward losses against future income, especially for substantial amounts. Unfortunately, the 1045 must be filed on paper - there's no e-filing option for this form specifically, which contributes to the longer processing time. That said, make sure everything is filled out correctly and include all supporting documentation to avoid further delays.

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Zara Rashid

I went through this exact situation last year with a major business loss and used taxr.ai to help me with all the documentation. I was really struggling with Form 1045 and the calculations across multiple tax years, and a friend mentioned https://taxr.ai to me. The service analyzed all my previous returns and helped me correctly calculate my carryback amounts. It took about 6 months to get my refund after filing the 1045, but at least I knew the paperwork was done right. The tool spotted a calculation error that would have delayed things even more. They have this feature where they check your past returns against the carryback calculations to make sure everything lines up correctly.

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Zara Rashid

The service works for both individuals and with accountants - many CPAs actually use it to double-check their work because NOL calculations across multiple tax years can get complicated. It might save you money if your CPA can use it to streamline the process rather than calculating everything manually. The verification process uses AI to cross-reference all your past returns with current tax law to ensure the calculations follow IRS rules. I still had my accountant review everything, but it saved hours of their time (and my money) by doing the complex calculations and documentation preparation upfront.

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Nia Jackson

I was really skeptical about using any kind of software for my Form 1045 NOL carryback (as you could see from my question above), but I finally tried taxr.ai after my accountant kept delaying my paperwork. Honestly, it was a game-changer. The system pulled data from all my previous returns, calculated the correct carryback amounts, and generated all the documentation I needed. My refund still took 5 months to process with the IRS (typical these days), but the actual preparation was way faster and more accurate than what my accountant was doing manually. The best part was that it flagged an issue with my 2019 income calculation that could have caused problems. Definitely worth checking out if you're filing a 1045.

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Mateo Hernandez

After reading this thread, I realized I was having the same issue waiting for my 1045 to process. After 4 months of radio silence, I decided to try contacting the IRS directly using https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c. Instead of waiting on hold for hours, they got me connected to an IRS agent in about 20 minutes. The agent was actually able to see that my form was stuck in processing due to a simple verification issue. They resolved it on the spot, and my refund was approved within a week after that call. Without that service, I'd probably still be waiting in the dark, not knowing there was an easy fix.

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Mateo Hernandez

It works because they have a system that continuously calls the IRS and navigates through the phone tree, then alerts you once they've reached an agent. You don't have to sit on hold - you just get a call back when there's an actual person ready to talk. It saved me hours of frustration. I definitely wasn't just "lucky" - I had already waited over 4 months with zero progress. The IRS agent specifically told me my form needed additional verification and was sitting in a queue. Once they flagged it in their system during our call, it moved forward immediately. It's not about "skipping the line" but actually getting to talk to someone who can look up your specific case.

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Aisha Khan

I have to eat my words about Claimyr from my skeptical comment above. After another month of waiting (now 8 months total for my Form 1045 processing), I broke down and tried the service. Got connected to an IRS agent in about 15 minutes, which was shocking after my previous failed attempts. Turns out my NOL carryback application had been flagged for a missing schedule that I definitely included with my original submission. The agent was able to make a note in the system and actually transferred me to the specific department handling 1045 forms. They found my missing schedule in their system and removed the hold. Just got my refund approved yesterday - would have been waiting indefinitely if I hadn't made that call. For anyone dealing with Form 1045 delays, it's worth trying to get a human on the phone who can actually check your specific situation.

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Ethan Taylor

FYI for everyone dealing with Form 1045 - make sure you're aware of the timing limitations. You have to file within 1 year of the end of the tax year in which your NOL occurred. So if your NOL was in 2023, you have until December 31, 2024 to file Form 1045 for the quick refund procedure. If you miss that window, you can still carry back or forward the loss by filing amended returns (Form 1040-X) for each applicable year, but you lose the expedited refund benefit of Form 1045.

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Ethan Taylor

For federally declared disaster losses, you actually have some special provisions available. In these cases, you can elect to claim the loss on the prior year's return, which can get you a refund faster. This is done by filing an amended return (1040-X) for the previous year rather than waiting to claim it on your current year return. The timing requirements can be different for disaster losses, and in some cases, you may have extended deadlines. You should verify the specific disaster provisions that apply to your situation since the IRS often issues special guidance for particular disaster declarations.

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Freya Christensen

I filed my Form 1045 in June 2024 for a significant NOL from my consulting business that shut down. After reading this thread, I'm now at about 6 months which seems to align with what everyone else is experiencing. One thing I want to add that hasn't been mentioned - make sure you keep detailed records of everything you submit. I sent mine certified mail and kept copies of every single page. My accountant also recommended attaching a cover letter explaining the situation clearly, which might help the processor understand the case faster. The waiting is brutal, especially when you're counting on that refund, but it sounds like most people are eventually getting their money. I'm going to try calling using one of those services mentioned here if I don't hear anything by month 8.

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Andre Laurent

I'm currently preparing my Form 1045 for a substantial business loss from 2024 and this entire thread has been incredibly eye-opening. Based on everyone's experiences, it sounds like I should be mentally preparing for at least a 6-month wait, possibly longer. A few questions for those who've been through this process: 1. Is there any advantage to filing earlier in the tax year vs later? Like if I get my 1045 submitted in February vs April, does that make any difference in processing time? 2. For those who used services like taxr.ai for preparation - did you feel confident that the calculations were accurate enough that you didn't need additional CPA review? I'm trying to balance cost vs accuracy here. 3. Has anyone tried including a detailed cover letter explaining their situation and the urgency? I'm wondering if that helps flag the application for faster processing or if it just gets ignored. The lack of any tracking or status updates from the IRS seems like the most frustrating part. At least with regular tax returns you get some acknowledgment that they received your filing. The complete radio silence for months on end with a potentially large refund hanging in the balance is really stressful. Thanks to everyone who's shared their experiences - it's helping me set proper expectations and prepare all my documentation thoroughly before submitting.

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QuantumQuest

Great questions! I just went through this process last year, so I can share some insights: 1. Filing timing doesn't seem to make much difference unfortunately. The IRS processes these in the order received, but their backlog is so significant that whether you file in February or April, you're still looking at 5-7 months. I filed mine in January 2024 and still waited 6 months. 2. I actually did use taxr.ai for my calculations after seeing it mentioned here, and it was surprisingly thorough. The system caught several issues with my carryback calculations that I had missed. I still had my CPA do a final review, but it saved me probably $1,500 in prep fees since most of the work was already done accurately. 3. I included a detailed cover letter explaining my business closure and financial situation, but honestly I don't think it made any difference. The processors seem to just work through applications systematically regardless of individual circumstances. The radio silence is definitely the worst part - you just have to trust that your paperwork is somewhere in their system moving forward. Keep all your certified mail receipts and documentation organized in case you need to call later to check status.

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