Tax Alert

2012 Filing Issues for Passive Foreign Investment Companies and Qualified Electing Funds
(March 7, 2013)

The IRS released a revised Form 8621, “Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund,” on Jan. 28, 2013. Part I of Form 8621 is designed to implement the information reporting requirements of Section 1298(f) of the Internal Revenue Code, which was enacted on March 18, 2010.

The IRS has indicated that Part I of Form 8621 is not required to be filed until regulations addressing the information reporting requirements are issued and Form 8621 is updated. Though the filing requirement for Part 1 may be suspended, the data collection requirement is not. Based on current guidance, a shareholder may be required in a subsequent year to provide requested information for deferred reporting years, even if not yet required to file Form 8621 as a result of the anticipated regulations. Taxpayers who normally would not file Form 8621 but for the information reporting requirements, are not required to file the form.

Taxpayers required to file Form 8621 for items other than the suspended information reporting requirements must continue to file. Those filers do not need to complete Part I of the form.


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