tailieunhanh - Instructions for Form 1118 (Rev. December 2012) Foreign Tax Credit—Corporations

What can and should be done on crisis prevention and management for the future? In recent weeks, the official sector has begun to provide its answer: from the 220-page US Treasury blueprint for an overhaul of the US regulatory structure released this past Monday (I read it all but it was difficult), to the initial reports of the President’s Working Group on Financial Markets, to the initial report of the Financial Stability Forum, to the report of the senior supervisors from the G-5 Parts of those reports, I think, are thoughtful and helpful, especially as regards to the rationalization. | Instructions for Form 1118 Rev. December 2012 Foreign Tax Credit Corporations Department of the Treasury Internal Revenue Service Section references are to the Internal Revenue Code unless otherwise noted. Future Developments For the latest information about developments related to Form 1118 and its instructions such as legislation enacted after they were published go to form1118. What s New for 2012 Schedule B Part II has been modified to include new line 1b for foreign taxes paid or accrued by the corporation during prior tax years that were suspended due to the rules of section 909 and for which the related income is taken into account by the corporation during the current tax year. See Schedule B and related instructions for additional information. Schedule G includes a new Part II which requires the corporation to indicate whether it paid or accrued any taxes that were disqualified under section 901 m or suspended under section 909. General Instructions Purpose of Form Use Form 1118 to compute a corporation s foreign tax credit for certain taxes paid or accrued to foreign countries or . possessions. See Taxes Eligible for a Credit later. Who Must File Any corporation that elects the benefits of the foreign tax credit under section 901 must complete and attach Form 1118 to its income tax return. When to Make the Election The election to claim the foreign tax credit or a deduction in lieu of a credit for any tax year may be made or changed at any time before the end of a special 10-year period described in section 6511 d 3 or section 6511 c if the period is extended by agreement . Computer-Generated Form 1118 The corporation may submit a computer-generated Form 1118 and schedules if they conform to the IRS version. However if a software program is used it must be approved by the IRS for use in filing substitute forms. This ensures the proper placement of each item appearing on the IRS version. For more information see Pub. 1167 General Rules and .