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 shareholders of a Passive Foreign Investment Company (PFIC) or Qualified Electing Fund (QEF).

Q: Who needs to file Form 8621?
A: Shareholders of a PFIC or QEF are required to file Form 8621.

Q: What is a Passive Foreign Investment Company (PFIC)?
A: A PFIC is a foreign corporation that meets specific criteria related to its income and asset composition.

Q: What is a Qualified Electing Fund (QEF)?
A: A QEF is a foreign investment fund that elects to be treated as such by its shareholders and meets certain requirements.

Q: What information do I need to complete Form 8621?
A: You will need information about the PFIC or QEF, including ownership interest, income, distributions, and any elections made.

Q: When is Form 8621 due?
A: Form 8621 is generally due on the same date as your federal income tax return, including extensions.

Q: What are the penalties for not filing Form 8621?
A: Failure to file Form 8621 may result in penalties, including monetary penalties and the disallowance of certain tax benefits.