UltraTax CS calculates advanced foreign tax scenarios. The following enhancements to 2013 UltraTax CS, many of which come directly from user requests, help to streamline data entry more than ever.
Foreign Employer Compensation Worksheet – The Foreign Employer Compensation (FEC) Worksheet is a calculating form this year. Screen FEC, a new screen in the Income folder, facilitates ease of use in calculating this form. You’ll no longer need to enter foreign employer compensation on Screen Income. UltraTax CS automatically includes income entered on Screen FEC in wages on Form 1040 line 7. Additionally, you may link the FEC income to Form 2555 (via the 2555 allocation code on Screen FEC) and to Form 1116 (via the Foreign activity form & Unit # fields on Screen 1116).
Foreign pensions entered in Screen 1099R are still indicated by marking the Foreign employer pension markbox. They are now also automatically reported on the Foreign Employer Compensation worksheet.
Foreign Tax Credit Enhancements
- UltraTax CS automatically pulls the foreign taxes from the K1 1065, 1120S, and K1 1041 folders.
- Each Schedule K-1 activity has a new Screen 1116. Foreign tax income and tax amounts will data share from the pass-through entity to Screen 1116.
- You’ll no longer need to combine foreign tax input per income category on Form 1116. UltraTax CS handles more than three columns per income category.
- A new detailed worksheet for regulated investment company (RIC) income is available.
- The Mutual fund or other regulated investment company (RIC) income field on Screen 1116-2 was moved to a more visible spot on the newly redesigned Screen 1116 and added to Screen B&D.
- Foreign tax information entered on Screen 1099M automatically transfers to Form 1116.
FinCEN Form 114 Replaces TD F Form 90-22.1 for the Reporting of Foreign Accounts – The Financial Crimes Enforcement Network has released FinCEN Form 114, which is used to report foreign accounts and replaces the obsolete Form TD F 90-22.1. This new form is included in 2013 UltraTax CS, and its data entry is located on Screens 114 and 114-2 in the Other folder. FinCEN Form 114 is filed with the U.S. Department of Treasury using a proprietary e-file system and is not processed by IRS e-file but can be electronically filed by the taxpayer at http://bsaefiling.fincen.treas.gov/Enroll.html. You can read more about this new form and its e-filing through 2013 UltraTax CS in this article: FinCEN Form 114 Replaces Form 90-22.1 for the Reporting of Foreign Accounts in UltraTax CS.
Please refer to these articles in our Help & How-To Center about entering data on:
- Screen FEC – Foreign Employer Compensation (FEC)
- Screen 1116 – Foreign Tax Credit (1040)
- Screen 114 – Report of Foreign Bank Accounts (1040)