Investment & Offshore Funds
Form 8621 (PFIC / Foreign Mutual Funds)
Information Return by a Shareholder of a PFIC
- Penalty
- Excess distribution regime applies highest marginal tax rate (37%) plus compounding daily interest going back to acquisition year.
- Deadline
- Attached to annual Form 1040.
- Who must file
- U.S. persons holding direct or indirect interests in a Passive Foreign Investment Company (foreign mutual funds, non-US ETFs, SICAVs, holding companies).
- Statute of limitations
- Statute of limitations on the entire return remains open until Form 8621 is filed.
- Key parts & schedules
- Part II (Elections: QEF / MTM / Section 1291) · Part V (Excess Distribution Calculation) · Part VI (QEF Pro-Rata Inclusions)
Where filings usually fail
- Buying European UCITS ETFs or local mutual funds unaware they are classified as PFICs
- Missing the first-year Qualified Electing Fund (QEF) or Mark-to-Market election
How we run it
- PFIC annual information statement evaluation and QEF election drafting
- Mark-to-Market election filings for marketable securities
- Purging elections to cleanse tainted PFIC historical shares
Next step
Not sure which forms apply to you?
Describe your situation in three lines. We map the filings before any work starts.