Updated PFIC And CFC Definitions And Reporting Rules


The IRS has issued updated reporting regulations under Code Sections 1291, 1298, 6038 and 6046. A lot of the changes are technical definitions, and relate to updates from proposed regulations going back to 1992. A few highlights to alert readers to look further if these rules affect them, include:

a. Definitions of “pedigreed QEF,” “1291 fund,” and “shareholder” and “indirect shareholder” for Code Section 1291 purposes;

b. Rules relating to the application of the PFIC rules when estates and trusts are involved, including taking into account excess distributions under Code §1291;

c. Details regarding annual PFIC Form 8621 filing requirements, including how they relate to trusts and estates. Interestingly, an exception from reporting for PFIC stock that is worth under $25,000 ($50,000 for joint returns) has been provided; and

d. Updates to Form 5471 filing requirements.

TD 9650. Definitions and Reporting Requirements for Shareholders of Passive Foreign Investment Companies; Insurance Income of a Controlled Foreign Corporation for Taxable Years Beginning After December 31, 1986

Topics:  CFC, IRC, IRS, PFIC, Reporting Requirements

Published In: Securities Updates, Tax Updates, Wills, Trusts, & Estate Planning Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Charles (Chuck) Rubin, Gutter Chaves Josepher Rubin Forman Fleisher P.A. | Attorney Advertising

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Charles (Chuck) Rubin
Gutter Chaves Josepher Rubin Forman Fleisher P.A.

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