Get the free Form 8621-A - irs ustreas

This form is used by shareholders to make late elections regarding the treatment of their investment in a Passive Foreign Investment Company (PFIC). It allows shareholders to elect a deemed dividend

How to fill out form 8621-a - irs

How to fill out Form 8621-A

1. Obtain Form 8621-A from the IRS website or relevant tax authority.
2. Fill in your personal information at the top of the form, including your name, address, and taxpayer identification number.
3. Enter the reporting period for which you are filing the form.
4. Complete Part I by providing information about the foreign corporation, including its name and address.
5. In Part II, report your share of the income, deductions, and credits from the foreign corporation for the reporting period.
6. If applicable, complete Part III to report the distribution you received from the foreign corporation.
7. Sign and date the form at the designated section.
8. Submit the completed Form 8621-A along with your tax return to the IRS by the due date.

Who needs Form 8621-A?

1. U.S. persons who have made investments in foreign corporations that are classified as Passive Foreign Investment Companies (PFICs).
2. Individuals and entities that have received distributions or made certain elections regarding their PFIC investments.
3. Taxpayers who need to report income from foreign corporations to comply with U.S. tax obligations.

People Also Ask about

How much is the tax act e filing fee?

Free. TaxAct's Free option is completely free when it comes to your federal taxes. For this, it costs you nothing to have your taxes prepared, printed and e-filed. However, each state you file for will cost you an additional $39.99.

How much is the fee for form 8621?

Our fee is $150 USD per form, with discounts starting on the 11th form. If you wish to make a mark to market or QEF election we will do that for no additional fee. No matter which option is right for you, our services provide a seamless continuity from year to year.

What do you need to report a PFIC to the IRS?

PFIC Reporting Threshold Typically, you only need to file IRS Form 8621 if you received income from a PFIC. However, if the total combined value of all your PFICs meets certain reporting thresholds, you must file Form 8621 —even if you didn't receive any distributions.

What is IRS form 8621 used for?

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.

Is there a penalty for not filing Form 8621?

Form 8621 Penalty: PFIC (Passive Foreign Investment Reporting) to the IRS is handled by filing an annual Form 8621. The failure to file the form does not directly result in a monetary penalty. Rather, the tax return may stay open indefinitely, which can lead to other penalties.

What is the penalty for filing form 8621?

While there is no Form 8621 penalty, most filers fail to simultaneously file Form 8938 to report the investment. The failure to report the PFIC interest on Form 8938 gives rise to a $10,000 penalty for failure to file, per incidence penalty.

What is the penalty for not reporting foreign income?

Learn about what to do if you have unreported foreign income and accounts. Non-Compliance with foreign asset reporting can lead to some hefty penalties such as: Failure to file FBAR: $10,000 for each non-willful violation. Failure to willfully file FBAR: the greater of $100,000 or 50% of the account's highest balance.

How much is the fee for form 8621?

Our fee is $150 USD per form, with discounts starting on the 11th form. If you wish to make a mark to market or QEF election we will do that for no additional fee. No matter which option is right for you, our services provide a seamless continuity from year to year.

What is the penalty for failing to file S Corp return?

S Corporation Late Filing – IRC 6699 — We charge a penalty when you file your S Corporation return late. The penalty is $220 for each person who was a shareholder at any time during the tax year, for each month or part of a month that the return was filed late, for up to 12 months.

What is the penalty for failing to file 8621?

Penalties for Related Forms: While Form 8621 lacks direct penalties, the IRS may impose penalties for non-compliance with related forms, such as Form 5471 (Information Return of U.S. Persons With Respect To Certain Foreign Corporations), which can impact PFIC reporting.

For pdfFiller’s FAQs

What is Form 8621-A?

Form 8621-A is a tax form used by certain U.S. taxpayers to report income, gains, and distributions from passive foreign investment companies (PFICs) and certain other foreign corporations.

Who is required to file Form 8621-A?

Taxpayers who own shares in a PFIC and have elected to report their income under the Qualified Electing Fund (QEF) rules must file Form 8621-A.

How to fill out Form 8621-A?

To fill out Form 8621-A, you need to provide information about your PFIC, including the name of the corporation, the tax year, the amount of income, and any capital gains or distributions received during the year.

What is the purpose of Form 8621-A?

The purpose of Form 8621-A is to allow U.S. shareholders of a PFIC to report income and gains from their investments in such foreign corporations, ensuring proper tax treatment and compliance with U.S. tax laws.

What information must be reported on Form 8621-A?

Form 8621-A requires the reporting of the shareholder's name and address, tax identification number, the name of the PFIC, the year of the report, and details of income, gains, and distributions received from the PFIC.