Troubleshooting ref. 55350 - Form 1116 reject in Lacerte
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.
- Go to Screen 11, Interest Income (1099-INT, 1099-OID).
- Select the applicable 1099-INT from the left menu.
- Scroll down to the Foreign Account and Foreign Tax Credit section.
- Remove any entries in Form 1116 name or number [O].
- 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.
- Verify you selected the appropriate Category of income.
- Complete any other applicable fields on this screen.
- Repeat steps 2-7 for any other 1099-INTs.
- Go to Screen 12, Dividend Income (1099-DIV).
- Select the applicable 1099-DIV from the left menu.
- Scroll down to the Foreign Tax Credit section.
- Remove any entries in Form 1116 name or number [O].
- 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.
- Verify you selected the appropriate Category of income.
- Complete any other applicable fields on this screen.
- Repeat steps 2-7 for any other 1099-DIVs.
- Go to Screen 20, Passthrough K-1's.
- Select Partnership Information from the left menu.
- Choose the applicable Partnership from the left menu.
- Scroll down to the Line 16 - Foreign Transactions section.
- 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.
- Verify you selected the appropriate Category of foreign income.
- Complete any other applicable fields on this screen from the K-1.
- Repeat steps 3-7 for each K-1.
- Go to Screen 20, Passthrough K-1's.
- Select S Corporation Information from the left menu.
- Choose the applicable S Corporation from the left menu.
- Scroll down to the Line 14 - Foreign Transactions section.
- 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.
- Verify you selected the appropriate Category of foreign income.
- Complete any other applicable fields on this screen from the K-1.
- Repeat steps 3-7 for each K-1.
- Go to Screen 20, Passthrough K-1's.
- Select Estate or Trust Information from the left menu.
- Choose the applicable Estate or Trust from the left menu.
- Scroll down to the Foreign Transactions section.
- 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.
- Verify you selected the appropriate Category of foreign income.
- Complete any other applicable fields on this screen from the K-1.
- Repeat steps 3-7 for each K-1.