Who Must File Form 8621
The short answer: if you are a U.S. person who owns PFIC stock, directly or indirectly, and any one of five things happens in the year, you file Form 8621 for that PFIC. If none happens, the annual report under section 1298(f) can still apply. The exceptions below are narrow. Always read the current IRS instructions.
The five situations that require Form 8621
- You receive certain direct or indirect distributions from the PFIC.
- You recognize gain on a direct or indirect disposition of PFIC stock (a sale, redemption, switch or transfer).
- You report information on a qualified electing fund (QEF) or a section 1296 mark-to-market election.
- You make an election listed in Part II of the form.
- You must file the annual report required by section 1298(f), even if nothing else happened.
A separate Form 8621 is required for each PFIC. For each PFIC, one form can cover Part I and any other parts and elections.
Who is a “U.S. person” here?
Generally U.S. citizens, U.S. residents for tax purposes (green card holders and people who meet the substantial presence test) and U.S. domestic entities. The PFIC rules apply to you only for the days you were a U.S. person. If you owned a fund before you moved to the U.S. or before you received your green card, special rules treat those earlier days differently (Treasury Regulations section 1.1291-9(j)). Tell your preparer the exact date you became a U.S. person.
The exceptions
| Exception | What the instructions say (paraphrased) |
|---|---|
| Small holdings | You may skip Part I if the total value of all your PFIC stock on the last day of the tax year is $25,000 or less ($50,000 or less on a joint return), and you received no excess distribution and recognized no gain on a section 1291 fund. If you sold with a gain or received an excess distribution, you file. |
| Small indirect holdings | You may skip Part I for stock you hold indirectly through another entity if its value is $5,000 or less, under the same no-excess-distribution, no-gain condition. |
| Tax-favored accounts | Shares held through IRAs, 401(k), 403(b), 457(b) and similar plans, 529 and ABLE accounts and certain tax-exempt organizations are generally not treated as owned by you for this purpose. |
| Certain foreign pension arrangements | Members or beneficiaries of certain foreign pension arrangements may be exempt from completing Part I. Check the arrangement against the instructions. |
When you are not required to file a tax return
If you do not have to file an income tax return, you still send Form 8621 directly to the IRS in Ogden, Utah, by the date the return would have been due.
Not sure? Use the self-check
The self-check asks five short questions and tells you whether Form 8621 is likely required, with the reason.
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.