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Troubleshooting ref. 55350 - Form 1116 reject in Lacerte

by Intuit• Updated 2 years ago

The following diagnostic is generating in Lacerte:

  • Form 1116 Reject: For electronic filing purposes, every Form 1116, Part II, Column L must have a "date paid or accrued" or "1099 Taxes" literal on row A, B, and C whenever applicable. Please review your input for all Forms 1116. Your Form 1116 input may also come under 1099-INT, 1099-DIV, 1116, Sch. C, Sch. F, and Passthrough K-1's input screen. (ref. #55350)

Why is this diagnostic generating?

This diagnostic was added to prevent rejects for Form 1116 after the IRS updated their e-file specifications for the form.

Both the Date Paid/Accrued and Name of foreign country are now required for e-filing. This means that:

  • You can no longer use Various for the Name of foreign country.
    • Choose Other Country (Various) instead.
  • You must enter the Date Paid/Accrued for all foreign taxes except those from a 1099-DIV or 1099-INT.
    • If you don't enter a date for interest or dividend foreign taxes, the program will enter "1099 Taxes" in Part II of Form 1116.
  • We don't recommend using the Form 1116 name or number [O] override to link income entries to a specific Form 1116. Using the override can cause e-file rejections and diagnostics to generate unexpectedly.

Troubleshooting

Review the foreign tax entries throughout the return to verify they're complete. Click on an income type below to view steps.

  1. Go to Screen 11, Interest Income (1099-INT, 1099-OID).
  2. Select the applicable 1099-INT from the left menu.
  3. Scroll down to the Foreign Account and Foreign Tax Credit section.
  4. Remove any entries in Form 1116 name or number [O].
  5. Make sure you selected a country from the Name of foreign country dropdown.
    • Various is no longer allowed. Instead, you can choose Other Country (Various), if applicable.
  6. Verify you selected the appropriate Category of income.
  7. Complete any other applicable fields on this screen.
  8. Repeat steps 2-7 for any other 1099-INTs.
  1. Go to Screen 12, Dividend Income (1099-DIV).
  2. Select the applicable 1099-DIV from the left menu.
  3. Scroll down to the Foreign Tax Credit section.
  4. Remove any entries in Form 1116 name or number [O].
  5. Make sure you selected a country from the Name of foreign country dropdown.
    • Various is no longer allowed. Instead, you can choose Other Country (Various), if applicable.
  6. Verify you selected the appropriate Category of income.
  7. Complete any other applicable fields on this screen.
  8. Repeat steps 2-7 for any other 1099-DIVs.
  1. Go to Screen 20, Passthrough K-1's.
  2. Select Partnership Information from the left menu.
  3. Choose the applicable Partnership from the left menu.
  4. Scroll down to the Line 16 - Foreign Transactions section.
  5. Make sure you selected a country from the (A) Name of Country dropdown.
    • Various is no longer allowed. Instead, you can choose Other Country (Various), if applicable.
  6. Verify you selected the appropriate Category of foreign income.
  7. Complete any other applicable fields on this screen from the K-1.
  8. Repeat steps 3-7 for each K-1.
  1. Go to Screen 20, Passthrough K-1's.
  2. Select S Corporation Information from the left menu.
  3. Choose the applicable S Corporation from the left menu.
  4. Scroll down to the Line 14 - Foreign Transactions section.
  5. Make sure you selected a country from the (A) Name of Country dropdown.
    • Various is no longer allowed. Instead, you can choose Other Country (Various), if applicable.
  6. Verify you selected the appropriate Category of foreign income.
  7. Complete any other applicable fields on this screen from the K-1.
  8. Repeat steps 3-7 for each K-1.
  1. Go to Screen 20, Passthrough K-1's.
  2. Select Estate or Trust Information from the left menu.
  3. Choose the applicable Estate or Trust from the left menu.
  4. Scroll down to the Foreign Transactions section.
  5. Make sure you selected a country from the (A) Name of Country dropdown.
    • Various is no longer allowed. Instead, you can choose Other Country (Various), if applicable.
  6. Verify you selected the appropriate Category of foreign income.
  7. Complete any other applicable fields on this screen from the K-1.
  8. Repeat steps 3-7 for each K-1.
Lacerte Tax 2018Lacerte Tax 2019Lacerte Tax 2020Lacerte Tax 2021

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