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Form 8992 calculation is incorrect. If Part II Line 3 is negative amount, the negative amount should not flow to Form 1040 Schedule 1 Line 21 and/or Form 1120.

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Level 1
last updated ‎December 07, 2019 7:15 AM

Form 8992 calculation is incorrect. If Part II Line 3 is negative amount, the negative amount should not flow to Form 1040 Schedule 1 Line 21 and/or Form 1120.  

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Level 15
last updated ‎December 07, 2019 7:15 AM

Lacerte seems to be computing Line 3 in both Part I and Part II correctly.  I can't see how Part II, Line 3 can be negative based on the Code and mathematically, how the form is set up.

If Net CFC Tested Income is negative, it doesn't flow to Part II.  NDTIR also cannot be negative; when Specified Interest Expense is larger than DTIR, Line 2c would just be zero.  The end result is that Line 3 of Part II would be zero and nothing will flow to Line 21.

Can you post the amounts you have on the form?

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Level 15
last updated ‎December 07, 2019 7:15 AM

Lacerte seems to be computing Line 3 in both Part I and Part II correctly.  I can't see how Part II, Line 3 can be negative based on the Code and mathematically, how the form is set up.

If Net CFC Tested Income is negative, it doesn't flow to Part II.  NDTIR also cannot be negative; when Specified Interest Expense is larger than DTIR, Line 2c would just be zero.  The end result is that Line 3 of Part II would be zero and nothing will flow to Line 21.

Can you post the amounts you have on the form?

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Still an AllStar

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Level 1
last updated ‎December 07, 2019 7:15 AM
We assume below:  Part II Line 1 - $500,000; Line 2a - $600,000; Line 2c - $600,000; Line 3 will be -$100,000 (negative amount calculated by Lacerte).  When Line 3 is -$100,000, the amount will flow to Form 1120 Schedule C Line 17 and the negative amount will offset taxable income.
If it's individual, the amount will flow to Schedule 1 Line 21 Other income.
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Level 15
last updated ‎December 07, 2019 7:15 AM
You're right.  This particular scenario does produce a negative number that flows through to Line 21, which is not correct, based on my understanding of §951A.  Let's see if one of the moderators could help.
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Still an AllStar
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Level 15
last updated ‎December 07, 2019 7:15 AM
@Kathi_at_Intuit @Intuit Austin F.8992 generally computes correctly, except the scenario presented by @rhuang9914 does produce a negative figure for GILTI, which flows through to the return as a reduction against income, incorrectly as we understand the Code and Regs for §951A.  Could you please have your development team look into that and give us an update?  Thanks!
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last updated ‎December 07, 2019 7:15 AM
I will test this later today and than get back to you all. (it will be late today)
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Level 15
last updated ‎December 07, 2019 7:15 AM
Thanks, @Kathi_at_Intuit!
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Still an AllStar
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last updated ‎December 07, 2019 7:15 AM
@itonewbie I can definitely duplicate it. Let me see what our Development says.
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Level 15
last updated ‎December 07, 2019 7:15 AM
Thanks again!  This is for both Lacerte and PTO.
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last updated ‎December 07, 2019 7:15 AM
@itonewbie @richard9914 @rhuang9914 I have heard back from our development, they are aware and are in the process of fixing this. I do not have an ETA for this, but I will watch it to see if/when one is added to it.
“In an infinite Universe anything can happen.”
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Level 1
last updated ‎December 07, 2019 7:15 AM
I have to complaint about Lacerte about this error.  Now is May already, that means many people might filed return already before April with this error.  The development team still work on this error?!
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Level 15
last updated ‎December 07, 2019 7:15 AM
Welcome to the club!  This is not unusual and the development team should really take heed. @The Intuit Boris
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Level 1
last updated ‎December 07, 2019 7:15 AM
This is really unacceptable coz the software fee is high.  Also, other software (Gosystem, Prosystem, etc) did not have this error.
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Level 15
last updated ‎December 07, 2019 7:15 AM
@The Intuit Boris Could you please give us an update?  Thanks!
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Employee
Employee
last updated ‎December 07, 2019 7:15 AM
Let me check on this for you.
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Community Manager
Community Manager
last updated ‎December 07, 2019 7:15 AM
@itonewbie Looks like we are expecting this to come out on a release next week.

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Level 15
last updated ‎December 07, 2019 7:15 AM
Sounds good.  Thanks, @Intuit Austin!
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Level 1
last updated ‎December 07, 2019 7:15 AM
Finally...
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last updated ‎December 07, 2019 7:15 AM
Happy Dance. Have a great holiday weekend!
“In an infinite Universe anything can happen.”
― Douglas Adams

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