Form 8621 Walkthrough: Parts, Lines and Where the Numbers Go
Form 8621 is titled “Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund.” The current revision is December 2025, with instructions of the same date; the IRS page for the form lists no recent developments (read on October 20, 2026). This page explains what each part is for. Details are in the IRS Instructions for Form 8621.
One form per PFIC
You complete a separate Form 8621 for each PFIC you own directly or indirectly, for each tax year it is required. In a chain of ownership you file one for each PFIC in the chain. If the fund has no EIN, you enter a reference ID above Part I: letters and numbers only, no spaces or special characters, 50 characters at most, and the same ID every year. For an Indian scheme, many preparers use the fund’s ISIN without spaces. Check the instructions before you choose.
The six parts
| Part | What it covers | You complete it when |
|---|---|---|
| Part I | Summary information: the class of shares (line 1), acquisition date (line 2), shares held at year end (line 3), year-end value (line 4), and the type of PFIC with any excess distribution, section 1293 inclusion or section 1296 amount (line 5). | Every year you hold the PFIC and the annual report applies (unless an exception applies). |
| Part II | Elections A through H (QEF, mark-to-market, deemed sale and deemed dividend elections, extension to pay). | You make an election. |
| Part III | Income from a QEF: ordinary earnings, net capital gain, and deferred tax under an extension election (lines 6 to 9c). | You have a QEF election. |
| Part IV | Gain or loss under a mark-to-market election (lines 10a to 14c). | You have a mark-to-market election. |
| Part V | Distributions from, and dispositions of, section 1291 fund stock (lines 15 and 16). Line 16 computes the tax and the interest on excess distributions. | You received a distribution or sold, and the stock is under the default rules. |
| Part VI | Status of prior-year section 1294 elections and termination of those elections (lines 17 to 26). | You had a section 1294 election (rare). |
Part V, line by line (default rules)
- 15a: total distributions this year. In the first year of the holding period the whole amount is an ordinary dividend, not an excess distribution.
- 15b and 15c: distributions in the prior years of the holding period, and one-third of that (or divided by the actual number of prior years).
- 15e(1) and 15e(2): the part of the distribution that is not excess (a dividend) and the excess distribution.
- 15f: gain on a sale or other disposition, treated as an excess distribution.
- 16a and 16b: the excess is spread over the days of the holding period; the amounts for the current year and for pre-PFIC periods are ordinary income.
- 16c: for each earlier PFIC year, the amount times the highest rate for that year.
- 16d: foreign tax attributable to the distribution, which reduces the increase in tax for each year, but not below zero.
- 16e: total increase in tax. 16f: interest on it.
The instructions require the computation, including the gain on a disposition, on a separate statement attached to the form, and a separate Part V for each block of shares with a different holding period. In 2025 the form added a space for a three-letter currency code above line 15a for amounts reported in a foreign currency.
Where the numbers go on your Form 1040 (2025)
| From Form 8621 | Where it goes |
|---|---|
| Line 16b: ordinary income from an excess distribution or gain | Schedule 1 (Form 1040), line 8z (other income) |
| Line 16e: additional tax | Form 1040, line 16: add it to the tax, check box 3 and write “1291TAX” |
| Line 16f: interest | Schedule 2 (Form 1040), line 17p |
| Line 24: interest relating to a section 1294 election | Schedule 2 (Form 1040), line 17q |
These lines come from the Form 8621 instructions (12-2025) and the 2025 Schedule 2. Check them against the form for the year you are filing.
Earlier years
The IRS issued a December 2018 revision of Form 8621 and the next revision in December 2025. For tax years 2018 through 2024 the 2018 revision is therefore the form to use; for 2025 and later, the December 2025 revision. The IRS site lists these under About Form 8621 and its prior-year forms.
General educational information. PFIC treatment, elections and reporting depend on individual facts and change over time. Confirm the rules on irs.gov and consult a qualified professional before filing Form 8621 or making any election. This site is an independent guide and is not affiliated with the IRS.