Trusts or estates required to file federal Form 1041 and that had Internal Revenue Code (IRC) Section 965 repatriation income for tax year 2017 that was not distributed to beneficiaries, will need to make an adjustment on their Arizona Form 141AZ to report the income to Arizona.
The net IRC section 965 amount should be included in the amount on line B3 “other additions to federal taxable income” on Arizona Form 141AZ.
The net IRC section 965 amount can be determined by subtracting line 3 from line 1 of the IRC Transition Tax Statement filed with federal Form 1041.
If the Arizona Form 141AZ for 2017 has already been filed without making this adjustment, file a corrected Arizona Form 141AZ and check the box indicating that you are filing an amended return.
Thursday, April 19, 2018