Summary of Changes for 2008

Instructions for Form 1118
Foreign Tax Credit -- Corporations
(Rev. December 2008)

Purpose: This is the first circulated draft of the Instructions for Form 1118 (Rev.
December 2008), for your review and comments. See below for a discussion of the major
changes.
TPCC Meeting: None, but one may be arranged if requested.
Prior Version: The December 2007 revision of the Instructions for Form 1118 may be
accessed at: http://www.irs.gov/pub/irs-pdf/i1118.pdf
Form: The December 2008 revision of Form 1118 was circulated earlier and is attached.
Other Products: Circulations of draft tax forms, instructions, notices, and publications
are posted at: http://taxforms.web.irs.gov/Circulations/index.htm
Comments: Please email, fax, or call with your comments by November 17 to the TLS
below and to the reviewer, Stephen Becker, at [email protected]

Yvette Lawrence
Tax Law Specialist
SE:W:CAR:M:T:B:C
Phone: 202-622-3776
Fax : 202-622-3262
Email: [email protected]

Major Changes
1. We have added an additional reporting requirement under Who Must File to reflect
Regulations section 1.904(f)-1(b), which requires corporations to report OFL balances
even for tax years for which the corporation is not claiming a current year credit.
2. We have added instructions for new line 4 of Schedule B. This line was added to the
form to streamline the reporting of the tax adjustment for high-tax kickouts under
Regulations section 1.904-4(c).
3. The foreign country codes listed on pages 11 and 12 will be updated at a later time
when we receive comments from our Foreign Country Code Working Group. We are
sending a copy of this circulation directly to the Working Group coordinator to solicit
these comments.

Form 1118
Foreign Tax Credit-Corporations
(Rev. December 2008)

Purpose: This is the first circulated draft of the 2008 revision of Form 1118 for your
review and comments. See below for a discussion of the major changes.
TPCC Meeting: None, but one may be arranged if requested.
Instructions: The revised December 2008 Instructions for Form 1118 will be circulated
at a later date. The revised December 2007 instructions may be accessed at:
http://www.irs.gov/pub/irs-pdf/i1118.pdf

Prior Version: The 2007 revision of Form 1118 may be accessed at:
http://www.irs.gov/pub/irs-pdf/f1118.pdf
Other Products: Circulations of draft tax forms, instructions, notices, and publications
are posted at: http://taxforms.web.irs.gov/Circulations/index.htm
Comments: Please email, fax, or call with your comments by June 20, 2008. Also,
please email a copy of all comments to reviewer, Stephen Becker, at
[email protected]

Yvette Lawrence
Tax Law Specialist
SE:W:CAR:M:T:B:C
Phone: 202-622-3776
Fax : 202-622-8210
Email: [email protected]

Major Changes
1. We are adding a new line 4 to Schedule B, Part II, on page 2 to provide filers with
a convenient location to report the high tax kickout tax adjustment required under
Regulations section 1.904-4(c).
2. We are modifying Schedule F, column 1 on page 6 to require filers to enter a country
code (instead of the actual name of the country or U.S. possession). This change is being
made at the request of LMSB/SRPP/Research and Planning, to facilitate automated risk
assessment.