Final Update
I have been able to eFile my Federal return, 🎉 , i.e., no IRS1116/ResidenceForeignCountryCd - data error. Note in retrospect I don't believe the error message identifies the actual processing problem.
I was able to work around what I believe are either deficiencies in the TTD eFile package or the IRS Form 1116 validation/processing.
Accepted return:
- Single Form 1116 (Copy 1) marked for "passive income” - note new and old totals varied by $3
- Column A - RIC
- Column B - Various - All other country foreign tax info aggregated in the column.
- Multiple 1099-DIV forms, either RIC or country summation linked to appropriate Form 1116 Copy 1, Columns A or B respectively
- One Schedule B Form 1116 marked for "passive income” properly populated by TT.
Prior rejected return:
- multiple Form 1116 (Copies 1 through 7), all marked for "passive income”
- many 1099-DIV forms each restricted to foreign tax payments to a single country or RIC correctly linked to appropriate Form 1116 Copy and Column
- one Schedule B Form 1116 marked for "passive income” properly populated by TT.
Comment:
- IRS Form 1116 instructions direct linking RIC foreign taxes to Copy 1 Column A and using other individual columns to sum country-specific foreign tax payments, as was done on the rejected return.
- I will retain for audit an electronic and PDF version of the rejected return. It documents completing the Form 1116 IAW the IRS instructions.
- Similarly, I will retain the associated rejection emails to document the need for the work around.
- Hopefully this information will aid TT technical support and developer teams improving the product.
