Definition:
FTC (The Foreign Tax Credit) is allowed for taxes paid or accrued on a foreign source lump-sum distribution from a pension plan. Special formulas may be used to figure a separate tax on a qualified lump-sum distribution for the year in which the distribution is received. Elect by checking Form 1116 box e above Part I. Skip Part I. Complete Part II showing only foreign taxes that are attributable to the lump-sum distribution.
Activity/ Implementation
Elect by checking Form 1116 box e, above Part I. Skip Part I. Complete Part II showing only foreign taxes that are attributable to the lump-sum distribution. See Page 15