Do I have to file 8621 every year?

If you are a direct or indirect shareholder of a PFIC, you are required to file IRS Form 8621 for each year that you: Recognize gain on a direct or indirect disposition of PFIC stock, or. Receive certain direct or indirect distributions from a PFIC, or. Make an election reportable on Form 8621.

What is a 8621 tax form?

A U.S. person that is a direct or indirect shareholder of a passive foreign investment company (PFIC) files Form 8621 if they: Receive certain direct or indirect distributions from a PFIC. Recognize a gain on a direct or indirect disposition of PFIC stock.

Who must file form 8621?

Form 8621: The IRS requires U.S. owners of a PFIC to report ownership of their passive foreign investment companies on Form 8621. Common examples include foreign mutual funds and holding companies. In recent years, the IRS has aggressively increased enforcement of offshore reporting.

Can I file form 8621 online?

Years in which you are required to file a tax return, you attach your Form 8621 and file it along with your return to the service center that normally processes your tax return. If you are using TurboTax, you will not be able to e-File your return.

Is there a penalty for not filing form 8621?

Penalties for failure to file Form 8621 could include a $10,000 penalty (under Form 8938), and suspension of the statute of limitations with respect to the U.S. shareholder’s entire tax return until Form 8621 is filed.

Does TurboTax have form 8621?

TurboTax does not support Form 8621. However, if you are knowledgeable in how to complete the form, you may complete it manually and attach it to a tax return that you print and file by mail.

Who Must File PFIC?

PFIC reporting is the requirement that US citizens or green card holders, who indirectly or directly own shares in a PFIC at any time during the year, must file Form 8621 with the IRS. As this is an additional and often complex form, you will need to pay your tax advisor additional fees to prepare these.

Do I need to file PFIC?

Do I need to report PFIC?

Is rental income PFIC?

The PFIC rules exclude from passive income certain interest, dividends, rents or royalties received from a related person to the extent allocable to income of the related person that is active income (the “Related Party Exception”).

What triggers PFIC?

Triggering PFIC is more likely if foreign company the fund invests in is a Controlled Foreign Corporation.