A credit is not allowed for paid/accrued taxes that are imposed by certain sanctioned countries. Income derived from each sanctioned country is subject to separate foreign tax credit limitations. Therefore, you must file separate Form 1116s for each sanctioned country. Our program allows only one Form 1116 to be included in your tax return.
If the country you paid taxes to is no longer a sanctioned country at the end of the tax year, refer to Pub. 514 to determine how to calculate the credit.
Refer to Form 1116 Instructions for more information.