I have a number of foreign holdings, all generating passive income. An accountant filed my taxes for several years. Then in 2016 I began filing via Turbotax. During these years I’ve been reporting only Paid taxes, no carryover. At the time I found just reporting the tax on 1116 challenge enough.
Belatedly, I discovered starting in 2016 TT was doing carryover for me. So TT carryovers started over in 2016. The result is I have two pools of unused credit, one starting in 2011 by the accountant and one started in 2016
To fix this I’m thinking I will have to amend years 2016 – 2018 and merge the two pools. Does this make sense, or is there a better way
Thanks for advice
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I am surprised not to have received any replies to this question.
Excess credits of Foreign taxes are propagated from one tax year to the next by carryover. That said, if an error occurs when reporting carryover in a given year then that error is propagated to successive years.
Considering this error has been reported from 2016 - 2018 to IRS I thought amending those years the only solution. Is that impractical or wrong?
If so, the only solution I can think of is to eat 2011 - 2015 credits and continue what TT started implicitly in 2016.
Thanks for any advice
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