Tag: Form 1118

By Anthony Diosdi In order to provide the Internal Revenue Service (“IRS”) with the information necessary to claim a foreign tax credit, a U.S. corporation claiming a foreign tax credit must attach Form 1118 otherwise known as “Foreign Tax Credit - Corporations,” to its tax return. This is the ninth of a series of articles designed to provide a basic overview of the Form 1118. This article is designed to supplement the instructions for the Form 1118 promulgated by the IRS.Introduction to Schedule GSchedule G of Form 1118 is designed to report any reductions of the deductibility of foreign credits claimed by a domestic corporation.  Part 1- Reduction AmountsLine A. Reduction of Taxes Under Section 901(e)Line A asks the preparer to reduce taxes under Section 901(e). Internal Revenue Code Section…

By Anthony Diosdi In order to provide the Internal Revenue Service (“IRS”) with the information necessary to claim a foreign tax credit, a U.S. corporation claiming a foreign tax credit must attach Form 1118 otherwise known as “Foreign Tax Credit - Corporations,” to its tax return. This is the fourth of a series of articles designed to provide a basic overview of the Form 1118. This article is designed to supplement the instructions for the Form 1118 promulgated by the IRS.Introduction to Schedule DSchedule D is designed to report foreign taxes deemed paid by a domestic corporation under Section 960(d) with respect to inclusions under the global intangible low-taxed income (“GILTI”) regime or Internal Revenue Code Section 951A. This schedule should only be completed with respect to Form 1118 filed…