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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)

This diagnostic is 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:

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.

Review the foreign tax entries throughout the return to verify they're complete. Select one of the following income types to view steps:

Interest Income:

Go to Screen 11, Interest Income (1099-INT, 1099-OID).
Select the applicable 1099-INT from the left menu.
Scroll to Foreign Account and Foreign Tax Credit.
Remove any entries in Form 1116 name or number [O].
Make sure you selected a country from the Name of foreign country dropdown.
- Select 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.

Dividend Income:

Go to Screen 12, Dividend Income (1099-DIV).
Select the applicable 1099-DIV from the left menu.
Scroll to Foreign Tax Credit.
Remove any entries in Form 1116 name or number [O].
Make sure you selected a country from the Name of foreign country dropdown.
- Select 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.

Partnership Information:

Go to Screen 20, Passthrough K-1's.
Select Partnership Information from the left menu.
Choose the applicable Partnership from the left menu.
Scroll to Line 16 - Foreign Transactions.
Make sure you selected a country from the (A) Name of Country dropdown.
- Select 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.

S Corporation Information:

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 to Line 14 - Foreign Transactions.
Make sure you selected a country from the (A) Name of Country dropdown.
- Select 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.

Estate or Trust Information:

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.
- Select 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.

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