Note:

The only time a TC 971 AC 114 should be posted to a BMF module later than 201911, is if the taxpayer had an already established 965(i) election that was made on Form 1041, during the inclusion period (201712-201911), and subsequently experiences a triggering event, in which case a TC 971 AC 114 with the amount of the triggered liability, should be input in the triggering event year module. A taxpayer may also make a Section 965(h) election to pay the triggered S corporation-related net 965 tax liability in 8 installments, in the year of the triggering event. The Table below reflects how a triggering event is reported on Form 1041, U.S. Income Tax Return for Estates and Trusts, and Form 965-A, Individual Report of Net 965 Tax Liability, for the reporting year. There should be no TC 971 AC 114 in put on an MFT 02 or MFT 34 (Corporation) module after 201911. A TC 971 AC 114 on an MFT 02 or MFT 34 module after 201911 is an indication of an erroneous TC 971 AC 114 transaction or a late IRC 965 inclusion/election.

Form

How a Triggering Event and/or a Triggering Event with a Section 965(h) Election is Reported

1041 Triggered Liability Paid in Full in the Year of the Triggering Event