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2020 form 1116 - date paid entries

LQCMpls
Level 1

Most of our clients with Foreign Tax payments and 1116 filing requirements are reporting information on a 1099DIV.   In past years we have used "Various" instead of a specific country. 

Now, for 2020, there is a mandate to include the date paid or accrued.  1099DIV statements often doesn't include some of this detail.  And if we do have the detail, the time it takes to make the necessary entries may eat away at the credit in tax-prep-fees.  Not entering the date information throws a critical diagnostic, barring e-filing.

Is this a new IRS mandate or a Lacerte programming change?  Is there a workaround?

(This is for clients that exceed the Foreign Tax paid threshold that would allow the election NOT to file a 1116.  OR for clients that file a 1116 because they have no tax to apply the credit against, and are carrying forward.)

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4 Replies 4
sjrcpa
Level 15

Use 12/31/20. 

CAGMC


ex-AllStar
rsotelo
Level 2

Using a date doesn't clear the diagnostic.  I've tried just checking the box ""1099 Taxes" and no date, I've tried putting in the date and not checking "1099 Taxes", and I've tried checking the box "1099 Taxes" and putting in the date.  Can't get the diagnostic to clear.

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TylorValdez1
Employee
Employee

Review input for screens 11,12, and 20 and remove any input that do not have foreign income, but might have the country or type of income that may have proforma'd from a prior year.

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rsotelo
Level 2

THANK YOU!  I hadn't even looked at screen 20.  When I did, I noticed some K-1 input that wasn't complete.  I just added various countries and the date and the error went away.