965-A Transition Tax

[joe2]

Where is the form?

[sjrcpa]

You selected Lacerte 2017 as your product. The forms for the 965 tax are for 2018 returns.

[joe2]

That is incorrect. https://www.irs.gov/newsroom/questions-and-answers-about-reporting-related-to-section-965-on-2017-ta...

[sjrcpa]

The tax was in effect for 2017, there were no forms for 2017.

[joe2]

Lacerte has a 965 Statement

[sjrcpa]

Yes that is how it was done for 2017.

[itonewbie · Accepted solution]

Are you filing a late 2017 return?  If so, you may consider preparing that on PDF and attaching it to the return as prior year tax products will likely not be updated for forms that are published in subsequent years even if those forms are retroactive.

If you are preparing a 2018 return, it just needs to reflect the transition tax for 2017 (even if fully paid) and any outstanding liability on the 2018 returns (and in future years until it is fully settled).  The input screen for Line 1 of Part I of F.965-A is on Screen 45.5.

[joe2]

I'm filing an amended 5471 to include the 965 transition. Will the necessary information carry over to the 2018 or do I need to reenter it?

[itonewbie]

5471 data will but numbers from 965 statement, I don't believe so.

[vwseq]

Hi, I'm preparing 2018 return with 2017 transition tax, I have already paid the liability today through IRS website. When I try to efile the tax return, the diagnostic requires an amount for 2018. Diagnostic "Form 965-A: Taxpayer's net tax liability with 965-related amounts is required when Form 965 is included in the return." I believe 965-A only need to show liability for 2017, nothing in 2018. Please advise. Thank you.