2021 Form 1116 Schedule B

[The Real Halloween]

Got this diagnostics message from PTO: Form 1116 Schedule B, Foreign Tax Carryover Reconcilliation Schedule must be attached as a PDF for electronic filing purposes. US - Ref #56669

Does PTO generate Form 1116 Schedule B, Foreign Tax Carryover Reconcilliation Schedule?

Thank you for your time.

[George4Tacks · Accepted solution]

https://proconnect.intuit.com/tax-online/forms-finder/  says it was released last week.

I believe input for carryover onto Sch B is just below the input for 1116. I have not tested that it works. 

[The Real Halloween]

@George4Tacks Thanks alot!

[johngjertsen]

Form 1116 Schedule B was released in its "final form" yesterday, 2/22/22, but I'm still seeing this critical diagnostic.

[George4Tacks]

Complete the section for Foreign Tax Credit Carryover (& same for AMT) for the years that the carryovers are from - FOR EACH category of income. That will create the Sch B & attach if needed. 

[johngjertsen]

These are already populated because we have been the tax preparer using ProConnect for those years. This is a new critical diagnostic this year because I'm pretty sure ProConnect has yet to put a software fix in place. The software is generating the Schedule B to the Form 1116 but simultaneously telling me that I have to attach a PDF.

[johngjertsen]

It doesn't work.

[IntuitRebecca]

Hi there,

The diagnostic is generating because even though the program produces the 1116 Schedule B, the IRS doesn't have it built into the e-file schema yet. So if you're e-filing, it needs to be attached as a PDF this year in order to be included with the return.

[johngjertsen]

Thank you for that explanation, IntuitRebecca. So the PDF I need to attach comes from a Partial Print on the File Return tab. I attached it to the e-file and the diagnostic is gone.

[The Real Halloween]

According to PTO to get rid of the critical diagnostics, you will need to go to partial print and then attach it as a pdf just like the suggestion by @johngjertsen

[taxprocommunitymember1]

1116 Schedule B does not seem to be available yet. New form for TY 2021. Anyone have any ideas on when it will become available?

[taxprocommunitymember1]

Does this mean that we WILL be able to e-file now - by attaching 1116/Schedule B??

[Linda8045Tax]

I checked for updates and am on the most current version.  Yet, I see no input for 1116 Schedule B and a partial print to PDF says form is not available for this release.  Thoughts?

[taxprocommunitymember1]

When I clicked on an error message for 1116 Schedule B - just got a message saying that it will be released with an update - but no date. So, not sure what's going on. Not sure whether to just file with an attachment - but if so, not sure it will go through successfully.

[Linda8045Tax]

I tried that and e-file still rejected.  I think I just wait to see if today's update rolls out to me sometime today.  I noted in the form release date tool, ProConnect anticipates March 8th as final version date.  May have to just sit tight for that, as well.  I have all these returns piled up and ready to file.  It's just a little frustrating.  Thanks for your reply.

[taxprocommunitymember1]

FYI_in Proseries Basic - no specific date was given. Here is the error message that I got.

[taxprocommunitymember1]

Just checked availability of forms again - and it looks like a 3/31/2022 release but cannot eFile?? Hope this is NOT the case. Will affect so many of my clients. Noticed that DRAKE Software had their ducks in order on this. 

[Linda8045Tax]

I saw Drake was ahead of this, as well.  😞

[Jsyrus]

I don't even see that the Schedule B for the 1116 is being generated. And I can't get past the error to E-file. So frustrating! 

[Jsyrus]

How do you do a Partial Print? And I'm not seeing a Schedule B on my clients under the 1116. How do you get that added?

[Linda8045Tax]

In Lacerte, in Forms view, Click the print tab up at the very top, then Tax Return, then the radio button for partial return.  It will bring up a menu of items to check to print. The items in your return are in bold.  You can then print only those items you've selected.

You aren't seeing data input under 1116 for Schedule B because it isn't there yet.  At least it isn't in the fiduciary module that I'm working in.  Again, in Forms view, in the Form list, you will see 1116 Sch B.  Note that it is gray and not bold.  If you click on it, you'll see the form isn't available yet.

[QuickRick]

This business of not having the forms ready for the tax season is just about the last straw. I may end up doing the return using Drake PPR and switching to Drake permanently, if this is the service level to be expected with PS.

[MelissaL]

3/4/2022

Hi all,

This is a post from Thursday on a Proseries Professional discussion thread:

"After further investigation, our Product Specialist was able to confirm that you will be able to EFile with the 1116 schedule B attached as a PDF, once that form is finalized. I apologize for any miscommunication earlier, as it was unclear if this form was going to be able to be EFiled or not. Form 1116 is final; the schedule B is set for tentatively 3/31. However, our Development Team is working around the clock to try to get the form out ASAP. Again, if you are needing any further information, please contact Technical Support. However, that is the latest update our team would be able to provide at this time."

[JWM]

I cannot believe what I am hearing. ProSeries is saying any return with a 1116 carryover value (requiring form 1116 schedule b) (every single one of my 350+ returns) cannot be e-filed until after 3/31? And even then, ONLY by attaching a pdf to the return? I cannot file a return for FOUR WEEKS?

[taxprocommunitymember1]

Still seeing on the Proseries website that you will NOT be able to e-File if you need 1116/Schedule B

[JWM]

The fact that 1116 schedule B is unavailable for efile is a disaster. The posted workaround will not work - the form will not be possible to efile even if you upload a pdf. I just got off the line with a second Intuit tech support agent ... the only option now is to file the return on PAPER. You cannot attach a PDF file because the 1116 worksheet is still connected to the return and the flag cannot be turned off. Intuit cannot submit the return electronically. Intuit must address this YESTERDAY. Has management considered:

IRS is processing paper returns with a 4-8 month delay. Correspondence is being handled by IRS in wildly non-chronological order: a letter sent one month ago might be resolved earlier than one sent 6 months ago, resulting in unintelligible garbage from IRS. Filing on paper means refunds will be late by months. International returns are usually due around 3/31 also .... this delay - which Drake is NOT experiencing apparently - means that those foreign returns may very well have to be extended also. My 350+ clients are almost all abroad and almost all need the 1116 ... this means every one of them is going to shell out at least $150 in DHL fees to paper file one 1040 and another $150 to file a nonresident US state return.

Intuit has now outsourced all tech support, but has taken away their ability to easily elevate problems. The first agent I spoke to refused to even try! Best estimated response time from a supervisor (now, in the run up to the tax filing deadline): 24-48 hours? Are you kidding me!?

Our clients are going to be extremely angry, will hear from friends using other preparers with Drake et all there is no problem ... causing a loss of client trust and maybe even the relationship. INTUIT has grossly failed US, its clients, and all of OUR clients. It's like they sold us this shiny new SUV - but with no sparkplugs and now they do not want to hear about it. "No worries - we'll send them to you March 31."

[taxprocommunitymember1]

We are in the same boat. Utterly inexcusable. 

Reputational damage to our firm - as it looks like we're the ones who dropped the ball. 

Will need to change software, Hopefully, it won't be too difficult to get a refund on the software.

[taxprocommunitymember1]

Just got off the phone with a Proseries rep. She told me that the Form 1116/Schedule B will not be available, and that we must prepare manually and attached - in order to e-file. But, at this point, not sure I have much confidence in what Proseries is telling us.

[bduteau]

There are way to many forms that we are having to manually prepare since the program is not prepared.  We pay a lot of money for this program for it not to function.  I have been telling clients for weeks that we had to wait and they are all getting frustrated.  

[darocco]

You can still Efile,.. Schedule B will be available on 3/31/22. Print that schedule out and add it as an attachment showing the correct carryovers reconciliation. 
Override the carryover to 2021 and 2022 lines on foreign tax credit computation worksheet, Leave them blank.
You will need to manually add amount to part III line 10…my two errors disappeared. I think this should work but won’t really know until I see Schedule B…

[darocco]

After you attach the schedule b as a .pdf…as other and then write in Form 1116 Schedule B. override the 2021 and 2022 carryover numbers on the worksheet. That will eliminate the 2 errors. Then manually input the 2021 carryover number to form 1116.

I think this may work…Efile errors definitely were eliminated.

[darocco]

Form 1116 was finalized on 3/3… schedule B will be available on 3/31…

[taxprocommunitymember1]

We have downloaded the final version of the form/schedule from the IRS' website to manually fill in and attaching. They said that the 1116/Schedule B would be available on 3/31/2022 and supposedly should be able to e-file - but not sure I have much confidence in that at this point.

[taxprocommunitymember1]

Completely agree with you. In the same boat.

1) Noticed today on Proseries Basic that the form would be available on 3/31/2022 and that you would be able to e-file - but that's another near month away, and two weeks from filing deadline with no assurances that the program would work. It might very well be that you would need to attach it or do other additional steps. 

2) Download 1116 Schedule B final form from the IRS website and manually rework each return, in order to zero out line 10 for each FTC category, but to make sure that you adjust elsewhere, if any carryforward credits were used - to make sure that any remaining balances would carry over to 2022 - and attaching a note thereof, etc. A lot of steps. But, an option.

Not sure what Proseries was thinking, but they clearly dropped the ball on this, putting a lot of people/firms in a major lurch, very late in the game. They could have sent us a heads up on the critical new schedule for this form, and delays. Everyone thought the 3/3/2022 release date was for the entire 1116 form - INCLUDING Schedule B. 

They often claim to have a form available, such as Form 8621, but, only works in certain circumstances, otherwise, must paper file. 

They need to get people with both TAX as well as TECH knowledge working on the software, in order to get products ready (including having had tested it beforehand) and communicating any delays, etc. way in advance. 

Good luck!!

[kwperry]

I tried and failed.  I attached Form 1116 Schedule B PDF attachment and unchecked the e-file diagnostic (a first for me) and e-filed the return.  It was rejected.

 Error F1116-004-02: If Form 1116, 'Form1116ScheduleB' must be attached to 'ForeignTaxCrCarrybackOrOverAmt' and 'ForeignlncmSection951Alnd' must not be checked.

A PDF attachment file is required to file this return electronically. The functionality of attaching the PDF attachment file "Form1116ScheduleB" is not currently available.

The functionality will be added in the future release. Please check form availability and wait until Schedule B (Form 1116) is in the product.

[darocco]

You need to override the 2021 and 2022 carryover on the form 1116 worksheet and then override the carryover line in the calculation and input correct number. That will work. You need to wait until 3/31 update to be able to Efile.

[darocco]

You need to wait until the 3/31 update.. then you will be able to Efile.

[IntuitBrittneyS]

Update: Form 1116 Sch B, Foreign Tax Carryover Reconciliation Schedule is now estimated to be ready for print on 3/10.

Although Form 1116 Sch B is not supported for e-file, you will be able to E-File returns with the 1116 Schedule B attached as a PDF, once that form is finalized.

For more information, please see our ProSeries Release dates page. 

[JWM]

ProSeries shows no errors ... is it now possible to also efile returns? Has the 1116 Schedule B issue been fully resolved?

[darocco]

Form 1116 schedule B has been updated on ProSeries but not Basic yet. When will BASIC be updated for this form?

[JWM]

The release date page shows that 1116 Schedule b is available for print and efile as of 3/10:

Form 1116 Sch B, Foreign Tax Carryover Reconciliation Schedule

Final on 03/10/2022, EF on 03/10/2022

[kwperry]

I tried e-filing two with the updates and both were rejected. 

Error Detail:
If Form 11~6, 'ForeignTaxCrCarrybackOrOverAmt' has a non-zero value, then a binary
attachment with description 'Form1116Schedule8' must be attached to 'ForeignTaxCrCarrybackOrOverAmt' and 'ForeignlncmSection951Alnd' must not be
checked. ·

Error Resolution:

"A PDF attachment file is required to file this return electronically. The functionality of
attaching the PDF attachment file "Form1116ScheduleB" is not currently available. The
functionality will be added in the future release. Please check form availability and wait
until Schedule B (Form 1116) is in the product."

[darocco]

Yes in ProSeries but not on Basic as of now. I would have assumed both programs would have updated at the same time,

[QuickRick]

Once again, the Basic package is the **bleep** step-child of the ProSeries line. Drake here I come.

[darocco]

Today was the update. Only ProSeries has been updated for the Sch.B but not Basic as of yet.

[darocco]

Thank you.. I was on the phone with customer service this morning for them to keep on insisting it had been updated. I explained it was updated on ProSeries but not Basic. It shows on Basic release list.. it should be today. I would have thought both programs would be updated at the same time.

[darocco]

Basic has been updated this afternoon for the Sch. B…

I was able to file clients with this form as a pdf attachment with no problems. All the returns filed were accepted. When you attach the form there is an indicator for Firm 1116. Once you click that Schedule B automatically shows in the description.

[kwperry]

I am using ProSeries Professional and I was able e-file returns requiring a Form 1116 Schedule B on 03/10/2022.  I was unable to successfully e-file these same returns, after the 03/09/2022 update, but i attribute my failure to operator error. 

With both the 03/09/2022 and 03/10/2022 e-file attempts I attached pdf Form 1116 Schedule B's, but with my 03/09/2022 submissions did not select the Form 1116 pdf attachment type.

[Dandrscpa1]

Irs said Form 1116 Schedule B was released 03/03, Pro series says it won't be available until 03/31. Can someone please tell me another good tax software program to buy, Pro series is pissing me off and I think we need to protest against them and put them out of business. 

[darocco]

It was updated early. About a week or so ago. If you look at forms.. it will show final. 
I have already done returns in both ProSeries and Basic With form 1116 schedule B with no problem efiling. No rejections. Just make sure you follow the direction of creating the sch B as a .pdf and attach. Drop down will have form 1116 and description will show schedule B…. Yes, schedule B shows up in the list of firms but not eligible to Efile.