Reminder:

A TC 971 AC 114 in the amount of the 965(i) triggered liability should be posted to the triggering event year module. If there is not a TC 971 AC 114 posted to the triggering event year module, input it.

When a 965(i) deferred liability is triggered, it must be transferred from Form 965-A, Part IV, where it is annually reported, to Part I, on one of lines 5 through 8 as follows: In column (a), the tax year in which the triggering event occurred is reported. Columns (b) through (e) are skipped and the triggered liability is reported in column (f) as a positive number. “No” is then entered in column (g) to indicate a 965(h) election is not being made to pay the triggered liability in installments. The amount in Column (f) should be carried to Column (h) and the corresponding line in Part II, column (b), Paid for Year 1, should report the payment made to pay the 965 liability in full.

In addition to reporting the triggered liability on the Form 965-A, the taxpayer should report the triggered net 965 tax liability on the Form 1041.

1041 Section 965(h) Election Made to Pay the Triggered Liability in 8 Annual Installments