KHWEBERCPA Posted April 6, 2015 Report Share Posted April 6, 2015 Client received a CP11 for additional tax due. The only tax due for this client was the repayment of advanced premium credits on line 46. They also had a foreign tax credit. Another tax program allowed the reduction of the balance due by the foreign tax credit. The IRS wants that amount back, according to the CP11. It would appear that there is a flaw in the program, or the IRS is wrong, and I am having difficulties finding out if the foreign tax credit can reduce the repayment amount. Anybody else experienced this? Ken Weber Vancouver, WA Quote Link to comment Share on other sites More sharing options...
jklcpa Posted April 6, 2015 Report Share Posted April 6, 2015 If the client isn't filing 1116 with a limitation calc'd there and client meets the requirements to not file that form, then the limitation is the lesser of $300 ($600 if joint) or the sum of lines 44 and 46. The sum of those 2 lines is the regular income tax plus the repayment of the PTC. Based on that, I think it should be allowed. Is the FTC being disallowed for some other reason, perhaps that the IRS is not recognizing it from its reporting source like the 1099-DIV or flowing through on a K-1? 1 Quote Link to comment Share on other sites More sharing options...
jasdlm Posted April 6, 2015 Report Share Posted April 6, 2015 It's a non-refundable credit, but since the excess premium credit is coming through online 46/47, I agree with Judy. I'm assuming the 8962 is completed correctly? Quote Link to comment Share on other sites More sharing options...
joanmcq Posted April 7, 2015 Report Share Posted April 7, 2015 The IRS disallows the FTC a lot. Just send in the documentation from the 1099-Div. Quote Link to comment Share on other sites More sharing options...
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