High Withholding Tax Interest

[Bird Legs]

Client has invested in an energy trust, with foreign income. Client is a limited partner.
The K-1 she received reflects the following Foreign Transactions:
Line 16A name of country Canada
Foreign Gross Income surced at partnership level:
16D Passive $ 1,100.

16E High Withholding Tax Interest $ 70.

16I Deductions allocated and apportioned at the partnershisp level
Passive $ 881.

16L Total Foreign Taxes Paid $ 172.

Am having trouble with the 16E High Withholding Tax Interest. Exactly what is this
and where does it go on the 1116? There will be no Form 1116 filed.

Have not seen this High Withholding Tax Interest before. Can Someone help
me with this?

Thanks

[JON]

and

can you get some of the high withholding back from Canada if it is high enough? I have a client who says he has received information about filing for refunds from Canada for the High W/H... Has anyone tried it??

[Bees Knees]

You can't claim the foreign tax credit on Form 1116 unless the tax was paid. If the tax was withheld, you would need to file for a refund with the foreign country, pay whatever tax is owed, and then claim that amount on Form 1116. If you don't attempt to apply for a refund, no credit is allowed.

[Bird Legs]

Thanks Jon & Bees

This is the first time I have seen this particular item on a K-1. Therefore, did not know
what to do with it.