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Foreign Funds & PFIC Reporting (Form 8621)
Foreign mutual funds, wealth-management products and many foreign ETFs are PFICs for U.S. tax. We file Form 8621 and choose the treatment that keeps the tax lowest.
What is included
- Identification of which holdings are PFICs
- Form 8621 for each fund
- Excess-distribution, mark-to-market (MTM) or QEF calculations
- Planning before you sell or before you become a U.S. resident
The default rule is harsh
Without an election, gains and large distributions from a PFIC are spread back over the years you held it, taxed at the highest rate for each year and charged interest. Elections made in time can avoid most of that.
Common questions
Are Chinese bank wealth-management products PFICs?
Many pooled products are. We review the product documents to decide, and the answer drives both Form 8621 and Form 8938.
Tell us your situation. We will tell you the fee.
A few short questions, a written quote within one business day, and a free 15-minute consultation if you would rather talk it through first.