Foreign tax credit carryover after proforma from 2017 to 2018 is not correct

[jimbocpa]

The computation of the foreign tax credit on Form 1116 for 2017 was changed in a release.  Part III, Line 19 was originally rounded to 4 places, and now it is being rounded to 9.  The difference is not immaterial, and we have found that 2018 returns (even if they were locked prior to proforma), the carryover of any foreign tax credit is no longer matching to the tax returns that were filed.  A huge amount of work will now have to take place to get the carryforward to match what was filed with the IRS.

[itonewbie]

I would think that subsequent updates should not affect returns that have been completed and locked.  @IntuitAlicia , would you be able to take a look and give an update?  Thanks!

[jimbocpa]

Apparently with the latest update to the 2017 program, the problem was correct.  We had to re-proforma all of our returns, but the carryfowards now match what was filed with the IRS.  

[itonewbie]

Good to know.  Thanks for the update, @jimbocpa!

[George4Tacks · Accepted solution]

I hope anyone seeing this, or several of the other posts, will learn that you use the first release of ANY problem cautiously. Proforma a couple of special clients. Look at the results of what happens, use them to test the new year tax program and find what is not yet complete. Send your comments to Lacerte to help them find the errors that will almost always occur. Don't print your organizers all at once. Pick a couple of special clients. Print their organizers. Review the formatting. Review whether all the appropriate figures from last year show up. Decide if your wording of client letter, engagement letter, questionnaire, etc all look and read as you intended. Personally I found mailing in December to be too early. Unless there is a postal rate increase, wait until at least the first week of January. Remember IRS won't open the flood gates until mid January and W-2's generally do not come out on January 1.

I wish you all many happy returns.