Form 8992 calculation is incorrect. If Part II Line 3 is negative amount, the negative amount should not flow to Form 1040 Schedule 1 Line 21 and/or Form 1120.

[richard9914]

Form 8992 calculation is incorrect. If Part II Line 3 is negative amount, the negative amount should not flow to Form 1040 Schedule 1 Line 21 and/or Form 1120.  

[itonewbie · Accepted solution]

Lacerte seems to be computing Line 3 in both Part I and Part II correctly.  I can't see how Part II, Line 3 can be negative based on the Code and mathematically, how the form is set up.

If Net CFC Tested Income is negative, it doesn't flow to Part II.  NDTIR also cannot be negative; when Specified Interest Expense is larger than DTIR, Line 2c would just be zero.  The end result is that Line 3 of Part II would be zero and nothing will flow to Line 21.

Can you post the amounts you have on the form?

[rhuang9914]

We assume below:  Part II Line 1 - $500,000; Line 2a - $600,000; Line 2c - $600,000; Line 3 will be -$100,000 (negative amount calculated by Lacerte).  When Line 3 is -$100,000, the amount will flow to Form 1120 Schedule C Line 17 and the negative amount will offset taxable income.
If it's individual, the amount will flow to Schedule 1 Line 21 Other income.

[itonewbie]

You're right.  This particular scenario does produce a negative number that flows through to Line 21, which is not correct, based on my understanding of §951A.  Let's see if one of the moderators could help.

[itonewbie]

@Kathi_at_Intuit @Intuit Austin F.8992 generally computes correctly, except the scenario presented by @rhuang9914 does produce a negative figure for GILTI, which flows through to the return as a reduction against income, incorrectly as we understand the Code and Regs for §951A.  Could you please have your development team look into that and give us an update?  Thanks!

[Kathi_at_Intuit]

I will test this later today and than get back to you all. (it will be late today)

[itonewbie]

Thanks, @Kathi_at_Intuit!

[Kathi_at_Intuit]

@itonewbie I can definitely duplicate it. Let me see what our Development says.

[itonewbie]

Thanks again!  This is for both Lacerte and PTO.

[Kathi_at_Intuit]

@itonewbie @richard9914 @rhuang9914 I have heard back from our development, they are aware and are in the process of fixing this. I do not have an ETA for this, but I will watch it to see if/when one is added to it.

[rhuang9914]

I have to complaint about Lacerte about this error.  Now is May already, that means many people might filed return already before April with this error.  The development team still work on this error?!

[itonewbie]

Welcome to the club!  This is not unusual and the development team should really take heed. @The Intuit Boris

[rhuang9914]

This is really unacceptable coz the software fee is high.  Also, other software (Gosystem, Prosystem, etc) did not have this error.

[itonewbie]

@The Intuit Boris Could you please give us an update?  Thanks!

[IntuitBoris]

Let me check on this for you.

[IntuitAustin]

@itonewbie Looks like we are expecting this to come out on a release next week.

[itonewbie]

Sounds good.  Thanks, @Intuit Austin!

[jonathan]

Finally...

[Kathi_at_Intuit]

Happy Dance. Have a great holiday weekend!