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Official form guide
Form 1118-SL: 1118 (Schedule L)
IRS Form 1118, Schedule L (Transactions Between Controlled Foreign Corporation and Shareholders or Other Related Persons) is an attachment to Form 1118 used by corporations to report certain transactions with related foreign persons when claiming a foreign tax credit. It is filed only when the corporation has reportable transactions that must be disclosed under Internal Revenue Code section 956 or related provisions. The schedule captures details such as amounts, dates, and nature of the transactions.
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IRS Form 1118-SL - 1118 (Schedule L)
IRS Form 1118, Schedule L (Transactions Between Controlled Foreign Corporation and Shareholders or Other Related Persons) is an attachment to Form 1118 used by corporations to report certain transactions with related foreign persons when claiming a foreign tax credit. It is filed only when the corporation has reportable transactions that must be disclosed under Internal Revenue Code section 956 or related provisions. The schedule captures details such as amounts, dates, and nature of the transactions.
Risk Radar
Scan points- 1Using an outdated edition of Schedule L can cause the IRS to reject the attachment.
- 2missing edition date
- 3incorrect transaction codes
- 4omitted amounts
- 5mismatched dates with Form 1118
Plain English
This schedule is a worksheet that lets a U.S. corporation show the IRS what money or property moved between it and its foreign subsidiaries or affiliates when it’s trying to get a credit for taxes paid abroad. Think of it as a list of deals that could affect how much foreign tax you can claim. You only need to fill it out if you had those kinds of deals during the tax year.
Submission Date
- Filing date: 2025-12-09 15:10:47
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
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What this form is for
- Use when filing Form 1118 and you have reportable CFC transactions.
- Do not use if you have no foreign tax credit claim or no related‑party transactions.
- Check Form 5471 for information returns that may also be required.
Form selector
Use this form or another form?
No foreign tax credit claimed
You don’t need Schedule L
✓ Verify you actually owe foreign tax
Reporting ownership of a CFC without transactions
Schedule L only covers transactions, not ownership
✓ Confirm whether any payments occurred
Claiming foreign tax credit via passive income
Schedule L not required for passive credit
✓ Review instructions for which schedule applies
Amending a prior year return
Schedule L must be refiled if changes affect transactions
✓ Ensure you attach the corrected schedule
Deadline or filing window
The deadline for Schedule L follows the deadline for the corporation’s income tax return, typically the 15th day of the fourth month after the tax year ends, with extensions available via Form 7004. If the return is filed electronically, the schedule must be included in the electronic submission. Confirm the exact date each year, as weekends or holidays may shift it.
Checklist
What you need before filling it out
Transaction date
Bank statement or invoice · Accounting records
Amount paid/received
Payment voucher or contract · Financial system
Description of property/services
Contract or invoice · Legal department
Related party name and EIN
Organizational chart or shareholder list · Corporate records
Section 956 inclusion calculation
Tax workpaper · Tax department
Before you submit
- 1Verify you are using the current edition of Schedule L (check the revision date).
- 2Confirm that Form 1118 is being filed for the same tax year.
- 3Ensure every reportable transaction has a corresponding line on Schedule L.
- 4Check that amounts are reported in U.S. dollars using the correct exchange rate.
- 5Validate that transaction codes match the instructions.
- 6Attach Schedule L to Form 1118 before attaching to the corporate return.
- 7Review the total foreign tax credit on Form 1118 for consistency with Schedule L amounts.
- 8Sign and date the corporate return (officer signature).
- 9Keep copies of all supporting documents for at least three years.
- 10If filing electronically, confirm the software accepted the schedule attachment.
How to file this form
- 1Determine if any reportable CFC transactions occurred during the tax year.
- 2Collect documentation: contracts, invoices, bank statements, payment records.
- 3Complete Schedule L line‑by‑line following the instruction booklet.
- 4Attach the completed Schedule L to Form 1118.
- 5Attach Form 1118 (with Schedule L) to the corporate income tax return (Form 1120 or applicable).
- 6Submit the return to the IRS service center indicated in the Form 1120 instructions or file electronically via approved e‑file provider.
- 7Retain a copy of the filed return and all supporting documentation.
- 8Monitor for any IRS acknowledgment or acceptance notice.
Known limitations
- 1Schedule L only reports transactions; it does not compute the foreign tax credit itself.
- 2The form does not provide guidance on determining which transactions are reportable—users must rely on the instructions and tax advice.
- 3No fee is associated with the schedule, but errors may lead to penalties.
- 4The schedule must be filed with Form 1118; it cannot be filed standalone.
- 5Electronic filing requires compatible software that supports the schedule attachment.
- 6The IRS may request additional documentation beyond what is shown on Schedule L.
Field map
Compact field-by-field guide
General Info
2 items
Full legal name and taxpayer identification number (SSN or EIN).
Current mailing address.
Details
2 items
Complete all applicable sections of this form according to the official IRS instructions.
Enter the relevant dollar amount if this form involves tax calculation.
Certification
1 items
Read and acknowledge any certifications required by this form.
Signatures
1 items
Sign and date. Unsigned forms cannot be processed.
Almost done reviewing the fields?
Fillable formOpen in Editor->The most recent revision of Schedule L is dated 2023; check the IRS website for any updates before filing.
What changed or needs a fresh check
- Edition date
- Fee
- Mailing address
- Deadline
- Signature
- Required evidence
Quick Facts
Downloads
After you file
- 1Keep a copy of the filed Form 1118 with Schedule L for your records.
- 2Retain all underlying transaction documents (contracts, invoices, bank statements) for at least three years.
- 3Monitor your IRS account or correspondence for any notices regarding the foreign tax credit.
- 4If you receive an IRS notice, compare the notice details to your submitted Schedule L.
- 5File an amended return (Form 1120-X) with a corrected Schedule L if you discover an error after filing.
- 6Update your internal tax calendar to note the filing date for future reference.
- 7Check for any changes to the schedule edition before the next tax year.
- 8Reconcile the amounts on Schedule L with your general ledger to ensure consistency.
Sources
- SRCForm title: IRS Form 1118-SL (Schedule L)Credit for Foreign Taxes Paid – Schedule L (Corporation)
- SRCApplicable to: U.S. corporations filing Form 1118 to claim foreign tax credits
- SRCUsed to report: Summary of foreign tax credit limitation calculations for the corporation
- SRCTax year: Must correspond to the corporation's taxable year (e.g., 2023)
- SRCFiling deadline: Same as the corporation's income tax return, generally the 15th day of the 4th month after year‑end, with extensions if filed
- SRCSignature requirement: Must be signed by an authorized officer of the corporation
- SRCAttachment rule: Attach Schedule L to the corporation's Form 1118 filing
- SRCWhere to file: Submit with the corporation's Form 1120 (or other applicable corporate return) to the IRS service center indicated in the instructions
- SRCFee: No separate filing fee for Schedule L; fee, if any, is part of the corporate return filing
Common confusion points
Confusion: Whether to include loans
Why it happens: Loans can be considered transactions under section 956
→ Safe check: Review the instructions for loan treatment and consult a tax professional if unsure
Confusion: How to convert foreign currency amounts
Why it happens: Exchange rates vary daily
→ Safe check: Use the yearly average rate specified in the instructions or the rate on the transaction date and document the source
Confusion: Mistaking Schedule L for Form 5471
Why it happens: Both relate to CFCs
→ Safe check: Remember Schedule L reports transactions; Form 5471 reports ownership and certain financial data
Confusion: Believing no Schedule L is needed if you have no foreign tax paid
Why it happens: Misunderstanding the credit trigger
→ Safe check: Schedule L is required when you claim any foreign tax credit, regardless of amount, if reportable transactions exist
Confusion: Thinking the schedule can be filed separately
Why it happens: Assuming it is a standalone form
→ Safe check: Verify that the instructions state Schedule L must be attached to Form 1118
Confusion: Using last year’s edition because the revision date is not obvious
Why it happens: Overlooking the revision date on the form
→ Safe check: Always look for the revision date in the bottom left corner before printing or filling
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- Receive an IRS notice, review Schedule L against source documents, and consider filing a superseded or amended return
Source transparency
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