Tag: IRS 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 eighth 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 F-3Claiming Foreign Tax Credits Through Multiple TiersSchedule F-3 is designed to report foreign taxes deemed paid with respect to dividends from certain fourth, fifth, and sixth-tier controlled foreign corporations (“CFC”s”) out of earnings accumulated in tax years beginning after August 5, 1997. An indirect foreign tax…

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 seventh 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 F-2Schedule F-2 is designed to compute the tax deemed paid by a first-tier foreign corporation with respect to dividends received from a second-tier foreign corporation prior to the Tax Cuts and Jobs Act of 2018. Schedule F-2 is applicable to dividends or inclusions for taxable years of…

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 sixth 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 F-1Schedule F-1 is designed to figure the tax deemed paid by a domestic corporation for first-tier corporation and inclusions of earnings from a first or lower tier foreign corporation prior to the Tax Cuts and Jobs Act of 2018. Schedule F-1 is applicable to dividends or inclusions…

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 third 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 CSchedule C is utilized to report taxes paid by the domestic corporation under Section 960(a) with respect to Section 951(a) subpart F inclusions.  inclusions under Section 951(a)(1). However, Schedule C should not be utilized to report 965 inclusions.Column 1a. Name of Foreign CorporationFor column 1a, the preparer…

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 second 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 BSchedule B is utilized to report foreign taxes paid, accrued, or deemed paid for the taxable year. All transactions on Schedule B must be reported in U.S. dollars. If the corporation must convert from foreign currency, attach a schedule showing the amounts in foreign currency and exchange…