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This form is used by shareholders of Passive Foreign Investment Companies (PFICs) or Qualified Electing Funds (QEFs) to report their investments and elect treatment options under U.S. tax law. It

How to fill out 8621

How to fill out 8621

1. Obtain Form 8621 from the IRS website or your tax professional.
2. Fill in your name, address, and taxpayer identification number at the top of the form.
3. Indicate the tax year for which you are filing the form.
4. Provide details about the foreign corporation, including its name, address, and country of incorporation.
5. Report your ownership in the foreign corporation, specifying whether you are a U.S. citizen, resident alien, or a U.S. shareholder.
6. Fill out Part I of the form, detailing the income and expenses from the foreign corporation.
7. Complete Part II if you have made distributions from the foreign corporation.
8. Review your entries for accuracy and completeness.
9. Sign and date the form before submission.
10. File Form 8621 with your income tax return, or separately if required.

Who needs 8621?

1. U.S. persons who are shareholders in a Passive Foreign Investment Company (PFIC).
2. Individuals who have investments in foreign corporations and wish to report their income.
3. Taxpayers who need to declare their interest in certain foreign entities to avoid potential penalties.

People Also Ask about

Do you have to file form 8802 every year?

If you request certification under this procedure, you must submit a Form 8802 for each year, but in years 2 and 3 you only need to attach a copy of the year 1 Form 8802 (including the penalties of perjury statement), provided there are no material changes to the information entered on the Form 8802 in year 1.

Do you have to file for S Corp every year?

An S corporation must file its annual tax return by the 15th day of the third month after the tax year ends. This is usually March 15 unless that day is a weekend or holiday. The business must report all financial activity on Form 1120S.

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 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.

Do I have to file an FBAR every year?

The FBAR is an annual report, due April 15 following the calendar year reported. You're allowed an automatic extension to October 15 if you fail to meet the FBAR annual due date of April 15. You don't need to request an extension to file the FBAR. See FinCEN's website PDF for further information.

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.

How is PFIC taxed in the US?

PFIC's income distributions are taxed as ordinary income at a rate as high as 40%. To make PFICs even more off-putting, you could be subject to compounded interest charges if you defer income and gains from a PFIC.

Do I have to file 8621 every year?

Annual Filing: Generally, Form 8621 must be filed annually with the taxpayer's federal income tax return. Reporting Income: Taxpayers must report their share of earnings and any gains distributed or recognized on PFIC investments.

For pdfFiller’s FAQs

What is 8621?

Form 8621 is a tax form used by U.S. persons to report their ownership of shares in a Passive Foreign Investment Company (PFIC).

Who is required to file 8621?

U.S. persons, including individuals and entities, who are shareholders in a PFIC are required to file Form 8621.

How to fill out 8621?

To fill out Form 8621, you need to provide information about your foreign corporation, the income it generates, and how you are taxed on it. You can obtain the form and instructions from the IRS website.

What is the purpose of 8621?

The purpose of Form 8621 is to ensure that U.S. taxpayers report their investments in foreign corporations classified as PFICs, which helps the IRS assess appropriate taxation.

What information must be reported on 8621?

Form 8621 requires information such as the name and address of the PFIC, the number of shares owned, the type of income earned, and any distributions received, among other details.