"Foreign Taxes Date Paid Diagnostic"

Forum|Forum|5 years ago
February 11, 2021
2 replies
23 views

I'm getting a e-file diagnostic saying that a date must be entered for foreign taxes paid or accrued. We mostly handle dividends. How to enter various dates of foreign taxes paid for the same holding or, different holdings under the same account?

Lacerte Tax

This topic has been closed for replies.

itonewbie

Level 15

First of all, I'm assuming that this is foreign tax reported on a 1099 and your client is not eligible for §904(j) election.

You can enter -01/01/01 (yes, a negative date) to print "Various". However, that is not acceptable for MeF which, of course, is not an issue if you're client is planning to paper-file. To avoid a critical diagnostic and enable e-filing, you can simply enter 12/31/2020.

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

S

ss12108

Level 3

I have the same question...the program used to automatically label these as "1099 TAX" which would satisfy the efile. I am curious what we are supposed to enter in order to achieve the same result and clear the diagnostic.

itonewbie

Level 15

@ss12108 What diagnostic are you getting? Did you enter an actual date?

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

S

ss12108

Level 3

#54377 and also #54378 (which I think is only popping up bc the first is generating)

In previous versions of Lacerte as far as I can remember the best practices was no date on 1099-DIV and 1099-INT entries as the program would automatically populate the efile with "1099 Taxes" as per the IRS instructions for form 1116.

If foreign tax paid on passive income is reported to you in U.S. dollars on a Form 1099-DIV, 1099-INT, or similar statement, you don't have to convert the amount shown into foreign currency. This rule applies whether or not you can make the election to claim the foreign tax credit without filing Form 1116 (as explained earlier). Enter “1099 taxes” in Part II, column (l), and complete columns (q) through (u) for each foreign country indicated in Part I.

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