No, you won't need to report it every year to the IRS but do track it, just in case if you decide not to use Turbo Tax in the future. As far as specific guidance, I haven't found any that address this specific issue.
i did read in the 1116 instructions for line 10 that carryover amount had to be reported on that line and the amount was generated from Schedule B 1116. However Schedule B AMT had no specific reporting requirement anywhere in that document. The reason being is that AMT carryover is not reported on Form 1116 itself but on a Form 1116 AMT, which is separate form.
Schedule B AMT Form 1116 would be generated if a Form 1116 AMT was required for this year but since you did not have an AMT situation, Form 1116 AMT was left out of your return as well as Schedule B AMT 1116.
Your tax accountants filed it because it is the best approach to be safe rather than sorry. The IRS loves paper trails even though these might not be needed.in some cases.
I hope this helps. As a FYI, the foreign tax carryover does expire after 10 years according to this IRS document.
@rcc_chen
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