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Part 3. Submission Processing

Chapter 11. Returns and Documents Analysis

Section 14. Income Tax Returns for Estates and Trusts (Forms 1041, 1041-QFT, and 1041-N) (Cont. 3)

3.11.14  Income Tax Returns for Estates and Trusts (Forms 1041, 1041-QFT, and 1041-N) (Cont. 3)

3.11.14.25 
♦Paid Preparer Section♦

3.11.14.25.4  (01-01-2012)
E-File Waiver Indicator (Form 8948)

  1. P.L. 111-92 H.R. 3548 Sec. 17 mandates that preparers of more than ten Form 1041 returns must file electronically. Form 8948, Preparer Explanation for Not Filing Electronically, provides certain exclusions from that requirement.

  2. The valid indicators are 1, 2, 3, 4, 5 and 6.

  3. If Form 8948 is attached edit the E-File Waiver Indicator in the bottom center margin of page 1, Form 1041 by following the instructions in the table below:

    If the box marked on Form 8948 is... Then Edit E-File Waiver Indicator...
    Box 1 "1"
    Box 2 "2"
    Box 3 "3"
    Box 4 "4"
    Box 5 "5"
    Box 6 a, b or c "6"

    Caution:

    If editing E-File Waiver Indicator Code "6," DO NOT edit any following alpha characters, such as "a" , "b" , or "c" .

  4. If multiple boxes are checked, edit according to the following priority order:

    Priority Order E-File Waiver Indicator
    Box 6a "6"
    Box 6b "6"
    Box 3 "3"
    Box 2 "2"
    Box 1 "1"
    Box 4 "4"
    Box 5 "5"
    Box 6c "6"

    Caution:

    If editing E-File Waiver Indicator Code "6," DO NOT edit any following alpha characters, such as "a" , "b" , or "c" .

  5. If no box is checked on Form 8948, but a notation is written near a box, go with filer intent.

3.11.14.26  (01-01-2012)
Schedule G (Form 1041), Lines 1a through 1d

  1. Schedule G (Form 1041) is located in the middle of Page 2 of Form 1041.

3.11.14.26.1  (01-01-2012)
Schedule G, Line 1a (Tax Per Tax Rate or Schedule D)

  1. The taxpayer must enter the Tax from the Tax Rate Schedule or Line 34 of Schedule D (Form 1041) to Line 1a of Schedule G (Form 1041).

  2. The taxpayer should enter the lesser of the Tax from the Form 1041 Tax Rate Schedule or the amount from Line 34 in Part V of Schedule D (Form 1041) to Line 1a of Schedule G (Form 1041). Edit Line 1a as follows:

    If Line 1a is blank ... Then ...
    Part V, Schedule D is attached with a positive entry on Line 34, Edit the amount from Line 34, Schedule D to Line 1a, Schedule G.
    There is no entry or a negative entry on Line 34, Schedule D, Continue editing.
    Schedule D is not attached, Continue editing.

  3. Form 8824 must be attached if Schedule D (Form 1041) or Form 4797 (Sales of Business Property) is attached to Form 1041 and the filer has notated "RELATED PARTY LIKE-KIND EXCHANGE" on Schedule D or Form 4797.

    If ... And ... Then ...
    Form 8824 is attached with an amount greater than zero on Line 22, Schedule D is not attached.

    1. Edit CCC "1" .

    2. Correspond for the missing Schedule D.
    Form 8824 is not attached, "RELATED PARTY LIKE-KIND EXCHANGE" is notated on Schedule D or Form 4797. Correspond for the missing Form 8824.

  4. For Schedule D editing instructions, see IRM 3.11.14.16.5 , Line 4, Capital Gain or Loss, Schedule D.

  5. For prior year editing instructions, see IRM 3.11.14.44 and IRM 3.11.14.44.2.4.

3.11.14.26.2  (01-01-2012)
Schedule G, Line 1b (Form 4972)

  1. Form 4972 must be attached to Form 1041 if an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 1b, Schedule G

  2. Edit Line 1b of Schedule G as follows:

    If ... Then ...
    Line 1b contains an entry≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 4972 is not attached, Correspond for the missing Form.
    Line 1b of Schedule G and Line 30* of Form 4972 are not equal,
    *(Line 38 for 1999 - 1997)     		Edit the lesser amount to Line 1b of Schedule G.

3.11.14.26.3  (01-01-2012)
Schedule G, Line 1c (Alternative Minimum Tax – Schedule I)

  1. Only one Schedule I can be processed. If more than one is attached, determine the correct Schedule I and "X" those schedules not used.

  2. Schedule I (Form 1041) must be attached to Form 1041 if an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Schedule G, Line 1c. See IRM 3.11.14.33, Schedule I.

    If ... Then ...
    Line 1c contains an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Schedule I is not attached, Correspond for the missing schedule.
    Line 1c entry and Schedule I, Line 56 entry do not equal, Edit the lesser amount to Schedule G, Line 1c.
    Line 1c is blank and Schedule I, Line 56 contains an entry, Edit the amount from Line 56 Schedule I to Line 1c, Schedule G (Form 1041).

  3. For prior year conversion instructions, see IRM 3.11.14.44.2.2 .

3.11.14.26.4  (01-01-2012)
Schedule G, Line 1d (Total Schedule G Tax)

  1. If Line 1d is blank and an entry is present on any of Lines 1a through 1c, edit the total of these three lines to Line 1d. *(Line 1c for TY 1999 and prior.)

3.11.14.27  (01-01-2012)
Schedule G (Form 1041), Lines 2a through 2d

  1. This subsection provides instructions for editing Lines 2a through 2d of Schedule G (Form 1041).

3.11.14.27.1  (01-01-2012)
Schedule G, Line 2a – Form 1116 (Foreign Tax Credit)

  1. Form 1116 must be attached to Form 1041 if an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 2a, Schedule G.

    If ... Then ...
    Line 2a contains an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ but Form 1116 is not attached, Edit MSC "30" .
    Line 2a contains an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Edit Audit Code "1" .

3.11.14.27.2  (01-01-2012)
Schedule G, Line 2b (General Business Credits)

  1. Line 2b* of Schedule G is used by taxpayers to claim General Business Credits (GBC).
    *(Line 2c for 2009 and prior)

  2. If Form 3800is required but missing, edit MSC "43" or correspond when three or more MSCs apply. Form 3800 is required when a CARRY FORWARD CREDIT ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is notated on return and when a 2008 or subsequent tax return has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Schedule G, Line 2b* *(Line 2c for 2009 and prior).

  3. Determine if Form 3800 is required on a prior year return as follows:

    If an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Schedule G, Line 2c and Tax Year is ... And Either of the following conditions is present ...
    2007

    1. The Form 3800 box is checked, or

    2. A credit is indicated (other than Form 5884, 6478, 8835-Section B, 8844, or 8846).
    2006

    1. The Form 3800 box is checked, or

    2. A credit is indicated (other than Form 6478, 8835-Section B, or 8844).
    2005

    1. The Form 3800 box is checked, or

    2. More than one credit is indicated (other than Form 6478, 8835-Section B, or 8844).
    2004

    1. The Form 3800 box is checked, or

    2. More than one credit is indicated (other than Form 8835-Section B or 8844).
    2003 - 2002

    1. The Form 3800 box is checked, or

    2. More than one credit is indicated (other than Form 8844 or 8884).
    2001 - 2000

    1. The Form 3800 box is checked, or

    2. More than one credit is indicated (other than Form 8844).

  4. When a business credit ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is not supported by the applicable form, correspondence action may be required.

    • If supporting documentation is missing for two or less credits, use the applicable Missing Schedule Code (MSC).

    • If supporting documentation is missing for more than two credits ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , correspond.

    • If supporting documentation is missing for an unidentified amount on Schedule G, Line 2b*, correspond.
      *(2009 or prior)


  5. Review Schedule G, Line 2b* for the following conditions:

    If ... And ... Then ...
    Line 2b*, Schedule G is blank, Form 3800 contains an entry on Line 38**, Edit the Line 38** amount to Line 2b of Schedule G.
    Line 2b*, Schedule G contains an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 3800 is not attached, Edit MSC 43 or correspond when three or more MSCs apply.
    Line 2b*, Schedule G and Line 38 of Form 3800 do not match, The difference is not supported by another credit, Edit the lesser of Line 2b and Line 38** to Schedule G, Line 2b.


    *(Line 2c for 2009 and prior) **(Line 32 for 2008-2010 (Line 19 for 2007 and prior)

3.11.14.27.2.1  (01-01-2012)
Form 3468 - Investment Credit

  1. Form 3468, Investment Credit, is required to be filed with Estate and Trust returns when claiming the Form 3468 credit.

  2. When an amount is present on Form 3800, Part III Line 1a or 4a*, or Form 1041, Schedule G, Line 2b** for Form 3468, take the following actions:
    *(Line 29a for 2010-2008) **(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 3468 is not attached, Correspond for missing Form 3468.
    Form 3468 has an entry on Line 8* and Form 3800 has an entry on Line 1a,
    (Not applicable for 2009 and prior revisions of Form 3468)     		Edit CCC "V" .

3.11.14.27.2.2  (01-01-2012)
Form 5884 - Work Opportunity Credit

  1. Form 5884, Work Opportunity Credit, is required to be filed with Estate and Trust returns when claiming the Form 5884 credit.

  2. When an amount is present on Form 3800, Line 4b* or Form 1041, Schedule G, Line 2b** for Form 5884, take the following actions:
    *(Line 29b for 2010-2008, Line 1b for 2006 and prior) **(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 5884 is not attached to a 200712 or later return, Edit MSC "38" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.3  (01-01-2012)
Form 5884-A - Credits for Affected Midwestern Disaster Area Employers (Employers Affected by Hurricane Katrina, Rita, or Wilma for 2006 Revision)

  1. Form 5884-A, Credits for Affected Midwestern Disaster Area Employers*, is required to be filed with Form 1041 returns when claiming the Form 5884-A credit.
    *(Employers Affected by Hurricane Katrina, Rita, or Wilma, for 2006 revision)

  2. When an amount is present on Form 3800, Line 1t* (2009-2008) for Form 5884-A, take the following action:
    *(Not applicable for 2007 revision, Line 1aa for 2006, Line 1z for 2005)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 5884-A is not attached, Correspond for the missing form.

3.11.14.27.2.4  (01-01-2012)
Form 5884-B - New Hire Retention Credit

  1. Form 5884-B, New Hire Retention Credit, is required to be filed with Form 1041 tax returns when claiming the Form 5884-B credit.

  2. If an amount is present on Form 3800, Line 1aa* for Form 5884-B:
    *(Line 29h for 2010)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 5884-B is not attached, Correspond for missing Form 5884-B.

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not correspond. The credit is from a pass-through entity and the form is not required.

    Form 5884-B is attached, Place in sequence order if a significant entry is present on Line 10 or 11.

3.11.14.27.2.5  (01-01-2012)
Form 6478 - Alcohol and Cellulosic Biofuel Fuels Credit (Credit for Alcohol Used as Fuel for 2007 and prior)

  1. Form 6478, Alcohol and Cellulosic Biofuel Fuels Credit (Credit for Alcohol Used as Fuel for 2007 and prior), is required with Estate and Trust returns if any of the following are present:

    1. The 2011 revision of Form 3800, Line 4c has an entry≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. The 2008 - 2010 revision of Form 3800, Line 29c has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    3. Schedule G, Line 2b* has an entry indicating Form 6478 is attached and a Form 6478 credit ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is claimed.
      *(Line 2c for 2009 and prior.)

    4. An amount is shown on Line 1d, of a 2004 or prior year Form 3800. The 2005 through 2007 revision of Form 3800 did not include the Alcohol and Cellulosic Biofuel Fuels Credit.

    5. An amount is shown on the Alcohol and Cellulosic Biofuel Fuels Credit line on a prior year return.

  2. When an amount is present on Form 3800, Line 4c* or Form 1041, Schedule G, Line 2b** for Form 6478, take the following actions:
    *(Line 29c for 2010 -2008) **(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 6478 is not attached, Edit MSC "39" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

    These instructions apply to 2009 tax year only, including fiscal year (200901 through 201011).

    Form 6478 has a significant amount on Line 5*, Column (c) or Line 8**,
    *(Line 5(c) or Line 7 for 2009, Line 79C) or Line 9 for 2008, not applicable for other prior year revisions.

    Reminder:

    Do not edit Action 343 for Tax Period 201012.

    		Edit Action Code "343" .

3.11.14.27.2.6  (01-01-2012)
Form 6765 - Credit for Increasing Research Activities

  1. Form 6765, Credit for Increasing Research Activities, is required to be filed with the Form 1041 tax return when claiming Form 6765 credit.

  2. When an amount is present on Form 3800, Line 1c* or Form 1041, Schedule G, Line 2b** for Form 6765, take the following action:
    *(Line 1d for 2006-2005, Line 1e for 2004 and prior) **(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 6765 is not attached, Edit MSC "40" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.7  (01-01-2012)
Form 8586 - Low-Income Housing Credit

  1. Form 8586, Low-Income Housing Credit, is required to be filed with the 1041 tax return when claiming Form 8586 credit.

  2. When an amount is present on Form 3800, Line 1d* or Line 4d** or Form 1041, Schedule G, Line 2b** for Form 8586, take the following actions:
    *(Line 1e for 2006-2005, Line 1f for 2004 and prior) **(Line 29d for 2010-2008) ***(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8586 is not attached, Edit MSC 44 (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

    Form 8586 is attached with an entry on Line 7 or 20, or
    Form 8609 is attached or
    Form 8609-A (prior year Schedule A (Form 8609)) is attached,     		Edit CCC "9" .

3.11.14.27.2.8  (01-01-2012)
Form 8820 - Orphan Drug Credit

  1. Form 8820, Orphan Drug Credit, is valid for Tax Periods 8301 through 9511, and 9607 and subsequent.

    Note:

    If this credit is claimed for an invalid tax period, "X" and disallow the credit.

  2. Form 8820, Orphan Drug Credit is required to be filed with 1041 tax returns when claiming Form 8820 credit.

  3. When an amount is present on Form 3800, Line 1h* or Form 1041, Schedule G, Line 2b** for Form 8820 take the following action:
    *(Line 1k for 2006-2005), Line 1l for 2004 and prior) **(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8820 is not attached, Edit MSC "42" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.9  (01-01-2012)
Form 8826 - Disabled Access Credit

  1. Form 8826, Disabled Access Credit, is required to be filed with Form 1041 tax returns when claiming Form 8826 credit.

  2. When an amount is present on Form 3800, Line 1e* or Form 1041, Schedule G, Line 2b** for Form 8826, take the following action:
    *(Line 1g for 2006-2005, Line 1h for 2004 and prior) **(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8826 is not attached, Edit MSC "47" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.10  (01-01-2012)
Form 8830 - Enhanced Oil Recovery Credit

  1. Form 8830, Enhanced Oil Recovery Credit, is not required to be attached to the Form 1041 tax return.

3.11.14.27.2.11  (01-01-2012)
Form 8834 - Qualified Plug-In Electric Vehicle Credit

  1. Form 8834, Qualified Plug-In-Electric Vehicle Credit, is required to be filed with Form 1041 tax returns when claiming Form 8834 credit.

  2. When an amount is present on Form 3800, Line 1z for Form 8834, take the following actions:

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8834 is not attached, Edit MSC "49" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

    Form 8834, *Part I, Line 1, Column (a), (b), or (c) include a vehicle year of 2008 or earlier,
    *(Part II, Line 8, Column (a), (b), or (c) for July 2009 revision.)     		Edit CCC "C" and circle the invalid vehicle year(s) and/or the invalid in service date(s).
    Form 8834, *Part I, Line 2, Column (a), (b), or (c) include an in service date of 02/16/2009, (Part II, Line 9, Column (a), (b), or (c) for July 2009 revision.)

3.11.14.27.2.12  (01-01-2012)
Form 8835 - Renewable Electricity, Refined Coal, and Indian Coal Production Credit

  1. Form 8835, Renewable Electricity, Refined Coal, and Indian Coal Production Credit, is required to be filed with 1041 tax returns when claiming Form 8835 credit.

  2. When an amount is present on Form 3800, Line 1f* or Line 4e or Form 1041, Schedule G, Line 2b** for Form 8835 take the following action:
    *(Line 1h for 2006-2005, Line 1i for 2004 and prior) **(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8835 is not attached, Edit MSC "50" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.13  (01-01-2012)
Form 8844 - Empowerment Zone Employment Credit

  1. Form 8844, Empowerment Zone Employment Credit, is required if:

    1. Form 3800, Line 3* has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
      *(Line 24 for 2010-2008 revision)

    2. Form 1041, Schedule G, Line 2b* has an entry indicating Form 8844 is attached and Form 8844 credit ≡ ≡ ≡ ≡ ≡ ≡ ≡ is claimed.
      (*Line 2c for 2009 and prior)

  2. When an amount is present on Form 3800, Line 3 or Form 1041, Schedule G, Line 2b* for Form 8844 take the following actions:
    (*Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8844 is not attached, Edit MSC "54" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.14  (01-01-2012)
Form 8845 - Indian Employment Credit

  1. Form 8845, Indian Employment Credit, is required to be filed with 1041 tax returns when claiming Form 8845 credit.

  2. When an amount is present on Form 3800, Line 1g* (2010-2007) or Form 1041, Schedule G, Line 2b** for Form 8845, take the following action:
    *(Line 1i for 2006-2005) **Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8845 is not attached, Edit MSC "51" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.15  (01-01-2012)
Form 8846 - Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips

  1. Form 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips, is required to be filed with 1041 tax returns when claiming Form 8846 credit.

  2. When an amount is present on Form 3800, Line 4f* or Form 1041, Schedule G, Line 2b** for Form 8846 take the following action:
    *(Line 29f for 2010-2008, Line 1j for 2006-2005, Line 1k for 2004 and prior) **(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8846 is not attached, Edit MSC "52" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.16  (01-01-2012)
Form 8847 - Credit for Contributions to Selected Community Development Corporations

  1. Form 8847, "Credit for Contributions to Selected Community Development Corporations" , is required to be filed with Form 1041 tax returns when claiming Form 8847 credit.

  2. When an amount is present on Form 3800, Line 1y* (2008 revision) or Form 1041, Schedule G, Line 2c** for Form 8847 take the following action:
    *(Line 1w for 2007, Line 1x for 2006, Line 1w for 2005, Line 1r for 2004, Line 1p for 2003-2002, Line 1n for 2001, Line 1m for 2000-1997) **(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8847 is not attached, Edit MSC "53" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.17  (01-01-2012)
Form 8861 - Welfare-to-Work Credit

  1. Form 8861, Welfare to Work Credit, is required to be filed with 1041 tax returns when claiming Form 8861 credit.

  2. When an amount is present on Form 3800, Line 1b* (2009-2007) or Form 1041, Schedule G, Line 2b** for Form 8861, take the following action:
    *(Line 1c for 2006 and prior) **(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8861 is not attached, Edit MSC "55" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.18  (01-01-2012)
Form 8864 - Biodiesel and Renewable Diesel Fuels Credit

  1. Form 8864, Biodiesel and Renewable Diesel Fuels Credit, is required to be filed with Form 1041 tax returns when claiming Form 8864 credit.

  2. When an amount is present on Form 3800, Line 1l* or Form 1041, Schedule G, Line 2b** for Form 8864 take the following action:
    *(Line 1m for 2007, Line 1p for 2006-2004) **(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8864 is not attached, Edit MSC "61" (or correspond if 3 or more MSCs apply).

3.11.14.27.2.19  (01-01-2012)
Form 8874 - New Markets Credit

  1. Form 8874, New Markets Credit, is required to be filed with Form 1041 tax returns when claiming Form 8874 credit.

  2. When an amount is present on Form 3800, Line 1i* or Form 1041, Schedule G, Line 2b** for Form 8874, take the following action:
    *(Line 1l for 2006-2005, Line 1r for 2004, Line 1m for 2004-2000) **(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8874 is not attached, Edit MSC "57" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.20  (01-01-2012)
Form 8881 - Credit for Small Employer Pension Plan Startup Costs

  1. Form 8881, Credit for Small Employer Pension Plan Startup Costs, is required to be filed with Form 1041 tax returns when claiming Form 8881 credit.

  2. When an amount is present on Form 3800, Line 1j* (2010-2007) or Form 1041, Schedule G, Line 2b** for Form 8881, take the following action:
    *(Line 1m for 2006-2005, Line 1n for 2004-2002) **(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8881 is not attached, Edit MSC "58" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.21  (01-01-2012)
Form 8882 - Credit for Employer Provided Child Care Facilities and Services
Facilities and Services

  1. Form 8882, Credit for Employer Provided Child Care Facilities and Services, is required to be filed with Form 1041 tax returns when claiming Form 8882 credit.

  2. When an amount is present on Form 3800, Line 1k* or Form 1041, Schedule G, Line 2b** for Form 8882 take the following action:
    *(Line 1n for 2006-2005), Line 1o for 2004-2002) **(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8882 is not attached, Edit MSC "59" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.22  (01-01-2012)
Form 8884 - New York Liberty Zone Business Employee Credit

  1. No editing required.

3.11.14.27.2.23  (01-01-2012)
Form 8896 - Low Sulfur Diesel Fuel Production Credit

  1. Form 8896, Low Sulfur Diesel Fuel Production Credit, is required to be attached to the Form 1041 Tax Returns when claiming Form 8896 credit.

  2. When an amount is present on Form 3800, Line 1m* or Form 1041, Schedule G, Line 2b** for Form 8896, take the following action.
    *(Line 1n for 2007, 1q for 2006-2004) **(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8896 is not attached, Edit MSC "62" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.24  (01-01-2012)
Form 8900 - Qualified Railroad Track Maintenance Credit

  1. Form 8900, Qualified Railroad Track Maintenance Credit, is required to be filed with Form 1041 tax returns when claiming Form 8900 credit.

  2. When an amount is present on Form 3800, Line 4g* or Form 1041, Schedule G, Line 2b** for Form 8900, take the following action:
    *(Line 29g for 2010-2008, Line 1l for 2007, Line 1o for 2006-2005) **(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8900 is not attached, Edit MSC "63" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.25  (01-01-2012)
Form 8906 - Distilled Spirits Credit

  1. Form 8906, Distilled Spirits Credit, is required to be filed with Form 1041 tax returns when claiming Form 8906 credit.

  2. When an amount is present on Form 3800, Line 1n* or Form 1041, Schedule G, Line 2b** for Form 8906, take the following action:
    *(Line 1o for 2007, Line 1r for 2006-2005) **(Line 2c for 2009 and prior).

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8906 is not attached, Edit MSC "65" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.26  (01-01-2012)
Form 8907 - Nonconventional Source Fuel Credit

  1. Form 8907, Nonconventional Source Fuel Credit, is required to be filed with Form 1041 tax returns when claiming Form 8907 credit.

  2. When an amount is present on Form 3800, Line 1o* or Form 1041, Schedule G, Line 2b** for Form 8907 take the following action:
    *(Line 1p for 2007, Line 1s for 2006-2005) **(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8907 is not attached, Edit MSC "66" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.27  (01-01-2012)
Form 8908 - Energy Efficient Home Credit

  1. Form 8908, Energy Efficient Home Credit, is required to be filed with Form 1041 tax returns when claiming Form 8908 credit.

  2. When an amount is present on Form 3800, Line 1p* or Form 1041, Schedule G, Line 2b** for Form 8908, take the following action:
    *(Line 1q for 2007, Line 1t for 2006-2005) **(Line 2c for 2009 and prior).

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8908 is not attached, Edit MSC "67" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.28  (01-01-2012)
Form 8909 - Energy Efficient Appliance Credit

  1. Form 8909, Energy Efficient Appliance Credit, is required to be filed with Form 1041 tax return when claiming Form 8909 credit.

  2. When an amount is present on Form 3800, Line 1q* or Form 1041, Schedule G, Line 2b** for Form 8909 take the following action:
    *(1r for 2007, Line 1u for 2006) **(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8909 is not attached, Edit MSC "71" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.29  (01-01-2012)
Form 8910 - Alternative Motor Vehicle Credit

  1. Form 8910, Alternative Motor Vehicle Credit, is required to be filed with Form 1041 tax returns when claiming Form 8910 credit.

  2. When an amount is present on Form 3800, Line 1r* or Form 1041, Schedule G, Line 2b** for Form 8910, take the following action:
    *(Line 1s for 2007, Line 1v for 2006, Line 1u for 2005) **(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8910 is not attached, Edit MSC "68" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

  3. When Form 8910 is attached, check for invalid in-service dates:

    If ... Then ...
    Form 8910, Part I, Line 2, Column (a), (b), or (c) include an in service date earlier than 02/18/2009 Edit CCC "C" and circle the invalid-in service date(s).

3.11.14.27.2.30  (01-01-2012)
Form 8911 - Alternative Fuel Vehicle Refueling Property Credit

  1. Form 8911, Alternative Fuel Vehicle Refueling Property Credit, is required to be filed with Form 1041 tax returns when claiming Form 8911 credit.

  2. When an amount is present on Form 3800, Line 1s* or Form 1041, Schedule G, Line 2b** for Form 8911, take the following action:
    *(Line 1t for 2007, Line 1w for 2006, Line 1v for 2005) **(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8911 is not attached, Edit MSC "69" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.31  (01-01-2012)
Form 8923 - Rescue Team Training Credit

  1. Form 8923, Rescue Team Training Credit, is required to be filed with Form 1041 tax returns when claiming Form 8923 credit.

  2. When an amount is present on Form 3800, Line 1u for Form 8923 credit, take the following action:

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8923 is not attached, Correspond for missing Form 8923.

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.32  (01-01-2012)
Form 8931 - Agricultural Chemicals Security Credit

  1. Form 8931, Agricultural Chemicals Security Credit, is required to be filed with 1041 tax returns when claiming Form 8931 credit.

  2. When an amount is present on Form 3800, Line 1v or Form 1041, Schedule G, Line 2b* for Form 8931, take the following action:
    *(Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8931 is not attached, Edit MSC "73" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.33  (01-01-2012)
Form 8932 - Credit for Employer Differential Wage Payments

  1. Form 8932, Credit for Employer Differential Wage Payments, is required to be filed with Form 1041 tax returns when claiming Form 8932 credit.

  2. When an amount is present on Form 3800, Line 1w* for Form 8932:
    (*Line 1w for 2009-2008, Line 1v for 2007, Line 1y for 2006)) take the following action:

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8932 is not attached, Edit MSC "74" (or correspond if 3 or more MSCs apply).

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not edit MSC or correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.34  (01-01-2012)
Form 8933 - Carbon Dioxide Sequestration Credit

  1. Form 8933, Carbon Dioxide Sequestration Credit, is required to be filed with Form 1041 tax returns when claiming Form 8933 credit.

  2. When an amount is present on Form 3800, Line 1x for Form 8933:

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8933 is not attached, Correspond for missing Form 8933.

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not correspond. The credit is from a pass-through entity and the form is not required.

3.11.14.27.2.35  (01-01-2012)
Form 8936 - Qualified Plug-In Electric Drive Motor Vehicle Credit

  1. Form 8936, Qualified Plug-In Electric Drive Motor Vehicle Credit, is required to be filed with Form 1041 tax returns when claiming Form 8936 credit.

  2. When an amount is present on Form 3800, Line 1y or Form 1041, Schedule G, Line 2b* contains an entry for Form 8936:
    (*Line 2c for 2009 and prior)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8936 is not attached, Correspond for missing Form 8936.

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not correspond. The credit is from a pass-through entity and the form is not required.

  3. When Form 8936 is attached, check for invalid vehicle years and invalid in service dates:

    If ... Then ...
    Form 8936, Part I, Line 1, Column (a), (b), or (c) include a vehicle year of 2008 or earlier, Edit CCC "C" and circle the invalid vehicle year(s) and/or the invalid in service date(s).
    Form 8936, Part I, Line , Column (a), (b), or (c) include an in service date 12/31/2008 or earlier,

3.11.14.27.2.36  (01-01-2012)
Form 8941 - Credit for Small Employer Health Insurance Premiums

  1. Form 8941, Credit for Small Employer Health Insurance Premiums, is required to be filed with the Form 1041 tax return when claiming Form 8941 credit.

  2. If an amount is present on Form 3800, Line 4h for Form 8941 process as follows:

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8941 is not attached, Correspond for missing Form 8941.

    Exception:

    If an EIN is present in Column (b), Form 3800 page 3, do not correspond. The credit is from a pass-through entity and the form is not required.

    Form 8941 is present, Place in sequence order if significant entries are present. IRM 3.11.14.2.2

3.11.14.27.3  (01-01-2012)
Schedule G, Line 2c - Form 8801 (Credit for Prior Year Minimum Tax)

  1. Form 8801, Credit for Prior Year Minimum Tax, must be attached if an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 2c* of Schedule G (Form 1041).
    *(Line 2d for 2009 and prior)

    Note:

    The Credit for Prior Year Minimum Tax ( Form 8801) cannot be claimed on Form 3800.

    If ... Then ...
    Form 8801 is attached,

    1. Compare the amount claimed on Form 1041 to Line 25* of Form 8801.
      *(Line 27 for 2009, Line 28 for 2008, Line 25 for 2007 and prior).

    2. If the amounts on Form 1041 and Form 8801 are not equal and if the difference is not supported by another credit, edit the lesser amount to Line 2c of Schedule G.

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8801 is not attached, Edit MSC "46" (or correspond if 3 or more MSCs apply).

3.11.14.27.4  (01-01-2012)
Schedule G, Line 2d - Bond Credits

  1. Form 8912, Credit to Holders of Tax Credit Bonds, must be attached if an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 2d* of Schedule G (Form 1041):
    *(Line 3 for tax year 2009 and prior as a write-in entry). See IRM 3.11.14.29.1)

    If ... Then ...
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8912 is not attached, Edit MSC "72" (or correspond if 3 or more MSCs apply).

3.11.14.28  (01-01-2012)
Unclaimed Credits

  1. Taxpayers sometimes file a credit form (e.g., Form 1116, Form 2439, etc.) attached to their Form 1041 but do not claim the credit on Form 1041 itself.

    1. Check Line 13 of Schedule K–1 to see if the credit has been used as a distribution to the beneficiaries.

      Caution:

      It is not necessary to math verify that all of the credit has been distributed on Schedule K-1.

    If ... Then ...
    A distribution is indicated on Schedule K–1, Do not edit the amount to Form 1041.
    A distribution is not indicated on Schedule K–1, Follow the specific instructions for processing the credit form received.

3.11.14.29  (01-01-2012)
Schedule G (Form 1041), Lines 3 through 5

  1. This subsection provides instructions for editing Lines 3 through 5 of Schedule G (Form 1041).

3.11.14.29.1  (01-01-2012)
Schedule G, Line 3 (Total Credits)

  1. Line 3 of Schedule G is computed by adding Lines 2a through 2d.

  2. If Form 1041, Schedule G, Line 3 contains an amount of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ refer the return for Criminal Investigation review following local procedures.

  3. For TY 2009 and prior year returns, Line 3 was used to claim bond credits. The following notations could be written on the dotted portion of line 3 along with the credit amount. The bond credit was added to the total of Lines 2a and 2d.

    Tax Year Notation ...
    2009 - 2008 "Form 8912" , Credit to Holders of Tax Credit Bonds
    2007 - 2006 "QZAB" (Qualified Zone Academy Bond Credit) from Form 8860
    "CREB" (Credit for Clean Renewable Energy), from Form 8912
    "GTCB" (Gulf Tax Credit Bonds) from Form 8912
    2005 - 2002 "QZAB" (Qualified Zone Academy Bond Credit) from Form 8860

    Note:

    Form 8912 or Form 8860 must be attached if the credit claimed ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Correspond if missing.

  4. Process as follows if there is a notation and credit amount on the dotted portion of Line 3: Add the entries on Lines 2a through 2d of Schedule G and compare that total to the entry on Line 3 of Schedule G.

    If ... Then ...
    The entry on Line 3 does not equal the total of Lines 2a through 2d,

    1. Delete the Line 2d amount.

    2. Add the original Line 2d amount to the difference between Line 3 and the total of Lines 2a through 2d.

    3. Edit this new amount to the left of the "X" .

    The entry on Line 3 equals the total of Lines 2a through 2d, Continue editing the return.

3.11.14.29.2  (01-01-2012)
Schedule G, Line 4 (Net Tax)

  1. Accept taxpayer's entry.

3.11.14.29.3  (01-01-2012)
Schedule G, Line 5 (Recapture Taxes)

  1. Line 5 of Schedule G is used to report Recapture of Investment Credits from Form 4255 and Form 8611 and may include the following write-in notations:

    • Recapture of Qualified Electric Vehicle Credit " QEVCR"

    • Recapture of Indian Employment Credit "IECR " from Form 8845)

    • Recapture of New Markets Credit "NMCR"

    • Recapture of the Credit for Employer-provided Child Care Facilities "ECCFR"

  2. If Schedule G, Line 5 Recapture taxes box for Form 4255, Recapture of Investment Credit, is checked or Form 4255 is attached, edit as follows:

    If ... Then ...
    Line 5 of Schedule G and Line 13 of Form 4255 entries are not equal, Edit the lesser amount to Line 5 of Schedule G.
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 4255 is not attached, Edit MSC "33" .
    Form 4255 is attached and the tax is not included on Line 5, Edit the amount from Form 4255 to Line 5.

    Exception:

    Do not edit the Form 4255 amount to Line 5 of Schedule G if the amount on Form 4255 is also entered on Schedule K–1, Line 13 (Code "T" ) as a distribution to the beneficiary.

  3. If Schedule G, Line 5 Recapture taxes box for Form 8611, Recapture of Low Income Housing Credit, is checked or Form 8611 is attached:

    If ... Then ...
    Line 5 of Schedule G and Line 8 of Form 8611 entries are not equal, Edit the lesser amount to Line 5 of Schedule G.
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8611 is not attached, Edit MSC "45" .
    Form 8611 is attached and the tax is not included on Schedule G, Line 5, Edit the amount from Form 8611 Line 8 to Line 5.

    Exception:

    Do not edit the Form 8611 amount to Line 5 of Schedule G if the amount on Form 8611 is also entered on Schedule K–1, Line 13 (Code "T" ) as a distribution to the beneficiary.

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ " ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡


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