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Federal input screens

Screen 8697 - Interest Computation Under Look-Back Method (1120)

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General Information

Suppress Simplified Marginal Impact Method election
The Simplified Marginal Impact Method election automatically prints when you complete the Simplified Marginal Impact Method section. Enter
X
 in this field to suppress this election when you print the return.
Closely held corporation (S Corp)
Enter
X
 in this field if the S Corporation is a closely held corporation and the amounts from Part II of Form 8697 will pass-through to the shareholders on Schedule K-1.

Regular Method (C Corp)

If not electing the simplified marginal impact method, then use this section to enter the amounts needed to calculate Form 8697, Part I.
Year ended
Enter the year ended (MM/DD/YY) for each prior tax year you were required to report income from completed long-term contracts. If there are more than three prior years, select on the tab for the 8697 Screen and select Add Unit.
Income tax liability on adjusted taxable income
Enter the income tax liability on the adjusted taxable income for each prior year using tax rates in effect for those years. Reduce the tax liability by allowable credits (other than refundable credits), but do not include any credit carrybacks.
Income tax liability shown on return
Enter the income tax liability for each prior year as reported on the tax return. If Form 8697 was filed for a prior year, enter the amount that was reported on Form 8697, line 4 for that particular year.

Simplified Marginal Impact Method

Year ended
Enter the year ended (MM/DD/YY) for each prior tax year you were required to report income from completed long-term contracts. If there are more than three prior years, select on the tab for the 8697 Screen and select Add Unit.

Interest Rates

The application calculates the interest due or refunded based on the known rates as published by the IRS in IRC section 6621(a)(1) at the time of shipment. Use these fields to enter additional rates as applicable.
note
The interest rates for amounts exceeding $10,000 are automatically calculated based on the interest rates entered in this section.

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