Enter data and import into the Foreign Tax Credit screens
For 1120L and 1120PC binders, the following
Foreign Tax Credit
data entry screens are available for data entry or import:- Sourcing Workpaper
- Interest Apportionment Information
- R&D Apportionment Information
- Foreign Income Taxes
Since TAS functionality exists for 1120L and 1120PC binders, tax-adjusted amounts transfer directly to the FTC Sourcing workpaper trial balance column. For international calculation purposes, the amounts in this column can be overridden manually or by import. Batch and single entity imports have been created for import into the
Sourcing Workpaper Trial Balance Override
screen. Sourcing workpaper trial balance amounts (from either TAS transfer or override), along with any allocation or apportionment, are required for successful international calculations.The
Sourcing Workpaper Trial Balance Override
template is defined as follows:Divisional consolidations
Similar to a binder with a return type of 1120, you can enter international information for an insurance divisional consolidation at the division or divisional consolidation level.
Each division of the divisional consolidation should have the same return type and international filing type as the divisional consolidation. Each division may use a different federal chart of accounts, but must use the same international chart of accounts. In this scenario, at the enterprise level, multiple federal charts would be cross-referenced to the same international chart.
TAS preliminary balance and journal entry adjustment amounts are always entered at the divisional level. The amounts then consolidate in the divisional consolidation process.
When sourcing is performed at the division level, sourcing workpaper and other international data is imported or entered in the division binders on data entry screens located beneath the
Foreign Tax Credit
folder. This international data is then consolidated in the divisional consolidation process.When sourcing is done at the divisional consolidation level, all data entry or imports on data entry screens located beneath the
Foreign Tax Credit
folder (including the Sourcing Workpaper Trial Balance Override import) is completed in the consolidated binder.To set the data entry level, right-click
Divisional Consolidation Binder Properties
, select the International
tab, then mark (or clear) the checkbox.Preparing Form 1118
The 1118 forms populated by the international calculations are under the
Intl Foreign Tax Credit
and Intl Foreign Tax Credit - AMT
folders in Organizer. Data manually entered or transferred to these international versions of the 1118 will not consolidate at a higher level. You should use these organizers throughout the organization structure if you're using international calculations.Tax Credit
When you do the transfer to the 1118 from the
International Compute
screen, data is transferred to international 1118s in the top consolidation and legal entity binders (that is, Parent, Subsidiary, and Div Con binders with an international filing type of Foreign Tax Credit). You can transfer the calculated amounts for Form 1118 to the current or different Top Con binder. As part of the transfer process, any information currently in the Form 1118 of the transfer destination binder is deleted. Therefore, we recommend that you wait until the last transfer from the international computes is done before you manually enter or override any information in the 1118 Organizer.
