Discussion:Question on Form 1118 - FTC related to Baskets

I had a question that I couldnt find the answer to after researching quite a bit. I would be very grateful if someone could help me or point me in the right direction.

It has to do with form 1118 and the different baskets of income related to the foreign tax credit for corporations. The baskets had a major change in 2007 were there are only 2 main categories now, general and passive. Now the problem relates to carrying forward the Foreign Tax Credit from previous years, all the way from 01 till 07, were the baskets changed overtime.

How are all the baskets, besides Passive, treated? Are all the carryforward balances lumped into the General category. Or is there some other method of treating all these old balances that were brough forward (are they not allowed to be used before, I hope this is not the case, as it is a rather large credit).

I've looked all over the IRS website for the different years of the form and the instruction, but they only have 2007. What do I do with the old carryforwards from the different baskets, do they all come under General (besides Passive) or is there some other special rule?

Any pub or other information doc from the IRS telling what to do?

A bit of a description of the baskets is below.

2007 Baskets - 1) Passive ; 2) General

2006 Baskets - 1) Passive ; 2) High Withholding Tax Interest ; 3) Financial Services Income ; 4) Shipping Income ; 5) Dividends from DISC or former Disc ; 5) Tax Income Attrible to Foreign Trade Income ; 6) Certain Dist from a FSC or former

2005 Baskets - same as 06

2004 Baskets - same as 06

2003 Baskets - same as 06 with addition of basket - Certain Dividends from each 10/50 PFIC

2002 Baskets - same as 06 with addition of basket - Dividend from each Noncontrolled section 902 corp

2001 Baskets - same as 02

Again your help is greatly appreciated.