Instructions for IRS Form 8621 Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund

IRS Form 8621 Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund

This document contains official instructions for IRS Form 8621 , Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 8621 is available for download through this link.

FAQ

Q: What is IRS Form 8621?
A: IRS Form 8621 is an information return that must be filed by a shareholder of a passive foreign investment company or qualified electing fund.

Q: Who needs to file IRS Form 8621?
A: Shareholders of passive foreign investment companies or qualified electing funds need to file IRS Form 8621.

Q: What is a passive foreign investment company?
A: A passive foreign investment company is a foreign corporation that meets certain criteria, such as deriving a significant portion of its income from passive investments.

Q: What is a qualified electing fund?
A: A qualified electing fund is a foreign investment fund that has elected to be treated as a qualified electing fund under IRS rules.

Q: What information is required to be reported on IRS Form 8621?
A: IRS Form 8621 requires information about the shareholder's ownership interest, income, gains, and distributions from the passive foreign investment company or qualified electing fund.

Q: When is IRS Form 8621 due?
A: IRS Form 8621 is generally due on the same date as the taxpayer's income tax return, including extensions.

Q: Are there any penalties for not filing IRS Form 8621?
A: Yes, there can be significant penalties for failure to file IRS Form 8621, including potential interest and accuracy-related penalties.

Q: Do I need to file IRS Form 8621 every year?
A: No, IRS Form 8621 generally only needs to be filed in certain years when there are reportable events related to the shareholder's ownership interest or income from the passive foreign investment company or qualified electing fund.

Q: Can I file IRS Form 8621 electronically?
A: Yes, IRS Form 8621 can be filed electronically using the IRS's e-file system or through approved tax software.