TC 971 AC 114 Explained

The TC 971 AC 114 represents the IRC 965 Total Tax Liability minus any amount that was deferred under IRC 965(i). A TC 971 AC 114 should only be present on IDRS on the year of the IRC 965(h) inclusion or the year and IRC 965(i) election triggers.

TC 971 AC 114 is only applicable to BMF MFTs 02, 05, 06, 34 and 44.

Form 1041 filers (MFT 05) that made a 965(i) election during the inclusion period and subsequently experience a triggering event, should have a TC 971 AC 114 input on the triggering event year module when the IRC 965(i) tax is assessed. This is the only time that TC 971 AC 114 should be present on a tax module after 2020. If an erroneous TC 971 AC 114 is present on a module, reverse it.