IRS Form 1118 Foreign Tax Credit - Corporations

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Instructions for IRS Form 1118 Schedule J Adjustments to Separate Limitation Income (Loss) Categories for Determining Numerators of Limitation Fractions, Year-End Recharacterization Balances, and Overall Foreign and Domestic Loss Account Balances

What Is IRS Form 1118?

This is a tax form that was released by the Internal Revenue Service (IRS) - a subdivision of the U.S. Department of the Treasury on December 1, 2020. Check the official IRS-issued instructions before completing and submitting the form.

FAQ

Q: What is IRS Form 1118?
A: IRS Form 1118 is a form used by corporations to claim a foreign tax credit.

Q: What does the Foreign Tax Credit refer to?
A: The Foreign Tax Credit allows corporations to offset their U.S. tax liability by the amount of foreign taxes paid.

Q: Who is eligible to use Form 1118?
A: Corporations that have paid or accrued foreign taxes on their foreign-source income are eligible to use Form 1118.

Q: What information is required on Form 1118?
A: Form 1118 requires information on foreign income, foreign taxes paid, and various calculations.

Q: When is the deadline to file Form 1118?
A: Form 1118 generally follows the same deadline as the corporate income tax return, which is the 15th day of the third month after the end of the tax year.

Q: Are there any penalties for not filing Form 1118?
A: Yes, failure to file Form 1118 or filing it with incorrect information may result in penalties.

Q: Can Form 1118 be filed electronically?
A: Yes, corporations can file Form 1118 electronically through the IRS e-file system.