Steve wrote:

- quote -

My question doesn't seem to have caught the interest of the
group, but I'm following up with an answer that I finally
got from the IRS on the phone, in case it might be useful to
someone else sometime.

The woman on the phone said that "you don't need to" doesn't
mean "you mustn't". So for my case, although I am eligible
for the adjustment exception mentioned on p.18 of the
instructions for form 1116, I don't have to use the
exception if I don't want to.

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My specific question is about form 1116 for claiming foreign
tax credits, but it raises a more general issue, namely
whether, when an instruction for a tax form says "you don't
need to do X", it means you can't do X even if you want to.

Under line 17 on form 1116 there is a caution to the filer
to consult p.16 of the instructions if they figured their
tax using lower rates on capital gains and qualified
dividends (which I did). The instructions for line 17 carry
over to p.18 where it says that "If you figured your tax
using the Schedule D Tax Worksheet ... you must use the
Worksheet for Line 17 on page 17 to figure the amount of tax
to enter on line 17 of Form 1116 if: ...", where all the ...
is stuff that includes me in. But then just below there is
"Adjustment Exception. If you qualify for the adjustment
exception, you do not need to use the Worksheet to figure
the amount to enter on line 17"

Well I do qualify for the adjustment exception, but I have
done the calculation both ways and I am slightly better off
if I use the worksheet. Can I waive my right to the
exception and enter the worksheet calculation on line 17?

Thanks.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >