Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

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.

richard9914
Level 1

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.  

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Best Answer

Accepted Solutions
itonewbie
Level 15

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?

---------------------------------------------------------------------------------
Still an AllStar

View solution in original post

0 Cheers
18 Comments 18
itonewbie
Level 15

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?

---------------------------------------------------------------------------------
Still an AllStar
0 Cheers
rhuang9914
Level 1
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.
0 Cheers
itonewbie
Level 15
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.
---------------------------------------------------------------------------------
Still an AllStar
0 Cheers
itonewbie
Level 15
@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!
---------------------------------------------------------------------------------
Still an AllStar
0 Cheers
Kathi_at_Intuit
Employee
Employee
I will test this later today and than get back to you all. (it will be late today)
0 Cheers
itonewbie
Level 15
Thanks, @Kathi_at_Intuit!
---------------------------------------------------------------------------------
Still an AllStar
0 Cheers
Kathi_at_Intuit
Employee
Employee
@itonewbie I can definitely duplicate it. Let me see what our Development says.
0 Cheers
itonewbie
Level 15
Thanks again!  This is for both Lacerte and PTO.
---------------------------------------------------------------------------------
Still an AllStar
0 Cheers
Kathi_at_Intuit
Employee
Employee
@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.
0 Cheers
rhuang9914
Level 1
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?!
0 Cheers
itonewbie
Level 15
Welcome to the club!  This is not unusual and the development team should really take heed. @The Intuit Boris
---------------------------------------------------------------------------------
Still an AllStar
0 Cheers
rhuang9914
Level 1
This is really unacceptable coz the software fee is high.  Also, other software (Gosystem, Prosystem, etc) did not have this error.
0 Cheers
itonewbie
Level 15
@The Intuit Boris Could you please give us an update?  Thanks!
---------------------------------------------------------------------------------
Still an AllStar
0 Cheers
IntuitBoris
Employee
Employee
Let me check on this for you.
0 Cheers
IntuitAustin
Intuit Alumni
@itonewbie Looks like we are expecting this to come out on a release next week.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Accept as solution"
0 Cheers
itonewbie
Level 15
Sounds good.  Thanks, @Intuit Austin!
---------------------------------------------------------------------------------
Still an AllStar
0 Cheers
jonathan
Level 1
Finally...
0 Cheers
Kathi_at_Intuit
Employee
Employee
Happy Dance. Have a great holiday weekend!
0 Cheers