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Form 1118, Foreign Tax Credit - Corporations

About the Income Sourcing Workpaper

The Income Sourcing Workpaper in foreign tax credit binders are used to allocate gross income account balances to designated source and country codes and to apportion any expense account amounts to one or more foreign source baskets. You must compute the binder (TAS, Compute) in order for balances to carry from the Working Trial Balance to the Sourcing workpaper.

Use the Income Sourcing Workpaper

The Sourcing Workpaper's populated based on the charts assigned to the binder. You can customize it to meet the needs of individual binders.
  1. In
    TAS
    , select
    Foreign Entity
    , and then
    Income Sourcing
    .
  2. Select the
    Sourcing Chart
    . This chart determines the source codes that appear as columns in the workpaper.
  3. Select
    Settings
     to filter the data.

Sourcing Workpaper columns defined

Sourcing Workpaper defined
Workpaper column
Description
Account / Additional Source Code Description
The Account Numbers and Source Descriptions (rows) appearing in the Sourcing Workpaper are from the International Summary Chart assigned to the binder. Federal Chart of Accounts Income Statement accounts are mapped to the Summary Chart using the International Cross-Reference Chart.
Original Trial Balance Amount
The Original Trial Balance Amount on the Sourcing Workpaper's the functional currency Adjusted Tax Balance from the Working Trial Balance (WTB) in TAS. The amount displayed for each Summary Account's the total of the adjusted tax balances of all Federal Chart of Accounts mapped to that row using the International Cross-Reference Chart. (Displayed when you select Original Trial Balance.
Trial Balance Amount or Override
Original Trial Balance Amounts carry to this column. When an override's present, a small red triangle appears in the cell. A text box lists the original TAS amount when the cursor hovers over the cell.
Amount to be Allocated or Apportioned
Represents the difference of the Trial Balance Amount less any allocated amounts. This column will be zero when the Trial Balance amount has been fully allocated to the Sourcing columns. Balances will remain in this column when an Apportionment Base Code's used.
Apportionment Base Codes
Remaining balances that have not been wholly allocated to one or more sourcing columns must be apportioned through the selection of at least one apportionment base code in the Apportionment Base Code column. The Apportionment Base Code determines the apportionment ratio to be applied to the field where the apportionment base code's entered. The ratio's determined based on the selection of previously allocated income amounts. Up to 3 base codes can be selected. If more than one base code's selected, the system will select the base code that best meets the optimization goal selected in Binder Properties.
Additional Source Code Amount
If the Sourcing Chart that's used doesn't include all of the necessary Source Codes, you can insert additional source codes on the fly by right-clicking the account and selecting Insert Source Code or you can modify the Sourcing Chart by selecting Delete Source Code from the sub-menu to delete an additional source code.
Sourcing Columns
Source Codes in the Sourcing Chart assigned to the binder display as Sourcing Columns. Depending on which Sourcing Chart's selected, different codes appear. It's common to create a Sourcing Chart for CFC purposes and another Sourcing Chart for FTC purposes. Up to 30 source codes (columns) can be assigned to a Sourcing Chart.

This article applies to:

  • Product: ONESOURCE International Tax
  • Subject: Workpapers
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