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  • Form 8621 Return By A Shareholder Of A Passive Foreign ...

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Form 8621 (Rev. October 1991) Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund Department of the Treasury Internal Revenue Service ? OMB No. 1545-1002 Expires.

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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.

A foreign corporation is a deemed passive foreign investment company (PFIC) if 75% or more of its gross income is from non-business operational activities (the income test). Or, if it has at least 50% of its average percentage of assets held for the production of passive income (the asset test).

Shareholders with a 10 percent or more interest in a CFC in which other U.S. shareholders own and control the stock are not subject to the PFIC rules. A startup can avoid the PFIC designation if all U.S. shareholders own their interest through a corporation that holds a 10 percent or more interest in the CFC.

As a U.S. citizen living and working abroad, you may have opened a foreign mutual fund investment account. If you've received any income from these funds in the past year, you're required to report it using U.S. tax Form 8621.

An asset is characterized as passive if it has generated (or is reasonably expected to generate) passive income (see Explanation: §1297, Passive Income Under PFIC Rules ) in the hands of the foreign corporation.

Exceptions to the annual filing requirement If a PFIC shareholder does not receive a payment from the PFIC or does not receive gains from the sale of the PFIC stock, and either: The combined value of all PFIC stock at the end of the PFIC shareholder's tax year does not exceed $25,000 ($50,000 for joint filers); or.

What is a PFIC? PFIC stands for Passive Foreign Investment Company. Under U.S. tax law, any pooled investment that is registered outside of the U.S. would qualify as a Passive Foreign Investment Company, including multiple types of funds, investment trusts, and certain foreign pension investments.

Tax form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund, is used to report income from foreign mutual funds, also referred to as passive foreign investment companies (PFICs).

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232