Caution:

A TC 971 AC 114 should be input on an inclusion year module and a triggering event year module only. The IRC 965 inclusion period was 201712-201911, no new inclusions can be made after 201911, however, if the taxpayer (MFT 05 ONLY) made a 965(i) election during the inclusion period and subsequently experiences a triggering event, the taxpayer may make a 965(h) election to pay the triggered liability in installments in the year of the triggering event. Moreover, taxpayers are required to file Form 965-A, Individual Report of Net 965 Tax Liability, , (MFT 05 ONLY) or Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, annually until the IRC 965 liability is paid in full. Do not mistake the reporting of an annual 965(h) installment payment or the annual reporting of a 965(i) deferred liability as a new IRC 965 inclusion or election. See IRM 3.14.2.6.5.3, IRC 965(i) Elections and IRM 3.14.2.6.5.4, IRC 965(h) Elections for an explanation of how annual 965(h) installment payments and triggered liabilities are reported.

Refer to the table below when the inclusion year and/or triggering event year module is in a debit balance.

If

And

Then

The 965(h) inclusion year module and/or the triggering event year module is in a debit balance

All TC 76X CRN 263 transactions on the module accurately reflect the payments posted to the module

Research the module and each following module looking for misapplied and/or mis-coded IRC 965 Designated Payments.

If any available IRC 965 payments are identified, move them to the inclusion year/triggering event year module and post them as a TC 670 DPC 64. Once posted, BMF programming will systemically post a TC 767 CRN 263 in the amount of the payment.

If after the payment(s) are moved to the inclusion year/triggering event year module, the module balance is zero, no further action is needed.

If after the payment(s) are posted to the inclusion year/triggering event year module, the module remains in a debit balance, refer the account for possible acceleration. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

If after the payment(s) are posted to the inclusion year/triggering event year module, the module is in a credit balance and the Section 965 liability has not been paid in full, input a TC 298.00 CRN 263 for the amount of the credit using the current date as the interest computation date to apply the credit to the next installment due.