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I had the same experience-I entered "Foreign US" on form 926 for foreign corporation and although Lacerte did not reject it-It was rejected by IRS several times...
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Spoiler (Highlight to read)Towards the bottom of the screen under Other info-Governance, -2nd to last question- check the box "Organization has written conflict...
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In the "other info" tab under "governance, management, etc." about three quarters down on the screen check the box "Officers, directors, trustees. etc are requi...