Taking an annual loss is never a pleasant prospect, though there are certain tax benefits available to C-corporations who incurred a financial loss.  If your working deductions surpassed your corporate income, you have the option of filing a Federal Tax Refund Claim.  Once you've finished completing you corporate tax return, fill out Form 1139 (Corporation Application for Tentative Refund).  This form allows you to apply operating losses from previous years, while requesting a refund for applicable taxes you paid during said timeframe.