Known e-file Issues and Solutions - Tax Year 2005 |
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Business Rules F1120- 259 through Form 1120-262
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These rules require specific information on Form 1120, line 8, Form 1120 Schedule L line 15(d) and Form 1120, Schedule M-1 line 10.
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These rules have been implemented differently for taxpayers filing Mixed Returns with Form 1120L and/or Form 1120PC subsidiaries that do not complete Form 1120 Page one lines 1-29, Form 1120 Schedule L or Form 1120 M-2 .
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You may need to “override” these rules in your software so you should talk with your software vendor to understand what will be necessary to complete your return and convert it into XML for filing.
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Form 1120, Schedule K, Line 4
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If the taxpayer answers Yes to Q. 4 - Is the corporation a subsidiary in an affiliated group or a parent-subsidiary controlled group AND the parent is a Foreign Corporation without an EIN, the following guideline should be used in completing the EIN and Name of the “parent” corporation:
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EIN- use the EIN of the taxpayer answering the Questions.
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Name/Name control- Use F- and the “parent’s” name/name control (no spaces). For example, if the Parent’s Name is ABC Corp. and the name control is ABCC , change the name for this line to F-ABC Corp which will then have a Name Control of F-AB.
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This will ensure that the EIN and Name/Name control being used do not cause a business rule to fire and the return to reject.
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The EIN will have a choice of Foreign, Applied For or the actual EIN in 2007.
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Form 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations Note: These solutions only apply to taxpayers preparing Forms 5471 in XML.
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Schedule I
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If multiple Schedules I are required to be filed for one Form 5471, the first should be in XML on the applicable form and all of the remaining Schedules I for that specific 5471 should be in one PDF file and attached to the applicable form 5471.
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Name the file so that it can be identified and use the dame name as the description and in the XML schema < Description > field (leave a blank space between the words).
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Form 5471, Schedule I will become a repeating group in 2007
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Schedule G
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If Schedule G, line 1 is YES, then 1 or more OwnsForeignPartnershipStmt must be attached in XML. This statement includes a required field for the type of return being filed for the foreign partnership. If one of the listed returns is not being filed for the foreign partnership the schema can not be completed correctly. If this is the taxpayer’s situation then complete the applicable OwnsForeignPartnershipStmt using the following information:
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Attach the correct statement information in PDF to the applicable Form 5471. Name the PDF file OwnsForeignPartnershipStmt and enter the description as Form 5471 Sch G - Owns Foreign Partnership Statement, ensuring that enough information is included on each statement to identify the Form 5471 to which it relates.
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OtherFormsFiled on the OwnsForeignPartnershipStmt will become an optional field in 2007.
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Form 8895 - One-Time Dividends Received Deduction for Certain Cash Dividends from Controlled Foreign Corporations
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Part IV – Foreign Tax Credit – Additional Limitation for Separate Categories With Nondeductible CFC Dividends must be completed for each separate category.
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One Form 8895 must be completed fully in XML, with Part IV lines 27-38 completed in XML for the first category and line 39 completed for the aggregate amount.
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Each additional Part IV Separate Category information for lines 27-38 should be completed on a separate Form 8895 and all of the Separate Category Forms 8895, except the first one should attached in one PDF file.
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Name the file Form8895PartIV.pdf and use "Form 8895 Part IV " as the description and in the XML schema < Description > field (leave a blank space between the words).
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Lines 27-38 will become a repeating group in January 2007
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Form T – Forest Activities Schedule
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Note: Form T- Part II, line 18 a & b - Solution must be used to validate the schema if you complete any portion of Part II
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Line 18 a & b are required entries and must be answered Yes or No
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18b - Are you revoking your section 631(a) election?
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Effective Date will only be required if 18b is Yes beginning in 2007.
Return to: e-file for Large and Mid-Size Corporations
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Page Last Reviewed or Updated: December 03, 2008