Instructions For Form 8621 - 2016 printable pdf download

Instructions for Form 8621

Department of the Treasury

Internal Revenue Service

(Rev. December 2016)

Information Return by a Shareholder of a Passive Foreign Investment Company or

Qualified Electing Fund

Section references are to the Internal Revenue

3. A U.S. partnership, S corporation,

Indirect shareholder. Generally, a

Code unless otherwise noted.

U.S. trust (other than a trust that is

U.S. person is an indirect shareholder of

subject to sections 671 through 679 for

a PFIC if it is:

Future Developments

the PFIC stock), or U.S. estate that is a

A 50%-or-more shareholder of a

For the latest information about

direct or indirect shareholder of a PFIC.

foreign corporation that is not a PFIC

developments relating to Form 8621,

and that directly or indirectly owns stock

Note. U.S. persons that are interest

and its instructions, such as legislation

of a PFIC,

holders of pass-through entities

enacted after they were published, go to

A shareholder of a PFIC where the

described in 3 above must file Form

PFIC itself is a shareholder of another

8621 if the pass-through entity fails to

PFIC,

General Instructions

file such form or the U.S. person is

A 50%-or-more shareholder of a

required to recognize any income under

domestic corporation where the

section 1291.

What's New

domestic corporation owns a section

1291 fund, or

Chain of ownership. Under the five

Part VI of the form has been redesigned

A direct or indirect owner of a

circumstances described earlier, unless

to clarify its completion. As a result of

pass-through entity where the

otherwise provided, if the shareholder

the redesign, Part VI has been moved to

pass-through entity itself is a direct or

owns one PFIC and through that PFIC

new page 4 of the form.

indirect shareholder of a PFIC. For more

owns one or more other PFICs, the

Who Must File

information on determining whether a

shareholder must either:

U.S. person is an indirect shareholder,

1. File a Form 8621 for each PFIC in

Generally, a U.S. person that is a direct

see Temporary Regulations section

the chain or

or indirect shareholder of a PFIC must

1.1291-1T(b)(8) and Notice 2014-28.

file Form 8621 for each tax year under

2. Complete Form 8621 for the first

For purposes of these rules, a

the following five circumstances if the

PFIC and, in an attachment, provide the

pass-through entity is a partnership, S

U.S. person:

information required on Form 8621 for

Corporation, trust, or estate.

each of the other PFICs in the chain.

1. Receives certain direct or indirect

However, a U.S. person that owns

distributions from a PFIC,

When and Where To File

stock of a PFIC through a tax-exempt

2. Recognizes gain on a direct or

organization or account described in the

Attach Form 8621 to the shareholder's

indirect disposition of PFIC stock,

list below is not treated as a shareholder

tax return (or, if applicable, partnership

3. Is reporting information with

of the PFIC:

or exempt organization return) and file

respect to a QEF or section 1296

An organization or an account that is

both by the due date, including

mark-to-market election,

exempt from tax under section 501(a)

extensions, of the return at the Internal

because it is described in section

4. Is making an election reportable

Revenue Service Center where the tax

in Part II of the form, or

501(c), 501(d), or 401(a),

return is required to be filed.

A state college or university

5. Is required to file an annual report

If you are not required to file an

described in section 511(a)(2)(B),

pursuant to section 1298(f).

income tax return or other return for the

A plan described in section 403(b) or

tax year, file Form 8621 directly with the

A separate Form 8621 must be filed

457(b),

Internal Revenue Service Center,

for each PFIC in which stock is held

An individual retirement plan or

Ogden, UT 84201-0201.

directly or indirectly. See Chain of

annuity as defined in section 7701(a)

ownership below for specific filing

(37), or

Definitions and Special

requirements.

A qualified tuition program described

Rules

in section 529 or 530.

See the Part I instructions, later, for

more information regarding the person

Interest holder of pass-through enti-

Passive Foreign Investment

that must file pursuant to section

ties. In general, the following interest

Company (PFIC)

1298(f).

holders must file Form 8621, unless an

A foreign corporation is a PFIC if it

exception applies:

A single Form 8621 may be filed

meets either the income or asset test

1. A U.S. person that is an interest

with respect to a PFIC to report the

described below.

holder of a foreign pass-through entity

information required by section 1298(f)

1. Income test. 75% or more of the

that is a direct or indirect shareholder of

(i.e., Part I), as well as to report

corporation's gross income for its

a PFIC,

information on Parts III through VI of the

taxable year is passive income (as

form and to make elections in Part II of

2. A U.S. person that is considered

defined in section 1297(b)).

the form. For example, a U.S. person

(under sections 671 through 679) the

that has made a section 1296

2. Asset test. At least 50% of the

shareholder of PFIC stock held in trust,

mark-to-market election with respect to

average percentage of assets

and

a PFIC will file a single Form 8621 and

(determined under section 1297(e))

complete Part I and Part IV.

held by the foreign corporation during

Nov 22, 2016

Cat. No. 10784P

Instructions For Form 8621 - 2016

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