Does anyone know where to report GILTI Deemed Paid Tax for individual tax return? We report it on schedule 5 as IRC 1341 credit, and now we receive a notice from IRS.

Forum|Forum|6 years ago
December 16, 2019
1 reply
17 views

One of our client is US shareholder of a CFC. We help him to file the GILTI tax. He paid tax to foreign government and elected sec 962, so he could get a GILTI deemed paid tax credit. We report the credit on Schedule 5 as "IRC 1341" credit, and now we received letter from IRS... Do anyone know where we should report the credit?

Lacerte Tax

This topic has been closed for replies.

itonewbie

Level 15

The IRS is probably questioning the validity of the claim of right credit. Shouldn't the deemed paid foreign tax credit flow through Schedule 3, Part I?

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

M

michael-zhangAuthor

Level 2

Yes, the IRS is proposing to disallow the amount claimed on Line 74 of Form 1040 as IRC 1341 Claim of Right Credit. I think you are right, it should flow through nonrefundable credit, schedule 3, but I'm not sure which line of schedule 3... I don't think the deemed paid tax credit is the normal foreign tax credit... I don't know where I could enter that number in schedule 3...

Sign up

Login with SSO

Let's get you signed in

Login with SSO