8621 Return by a Shareholder of a Passive Foreign Investment

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I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 8621, PAGE 1 of 2
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20. INK: BLACK
FLAT SIZE: 216mm (81⁄2 ")
279mm (11")
PERFORATE: (NONE)

8621

(Rev. December 2004)

Date

Revised proofs
requested

Return by a Shareholder of a Passive Foreign
Investment Company or Qualified Electing Fund

Department of the Treasury
Internal Revenue Service

䊳

Signature

O.K. to print

PRINTS: HEAD to HEAD

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form

Action

OMB No. 1545-1002
Attachment
Sequence No.

See separate instructions.

69

Name of shareholder

Identifying number (see page 2 of instructions)

Number, street, and room or suite no. (If a P.O. box, see page 2 of instructions.)

Shareholder tax year: calendar year 20
or other tax year
beginning
, 20
and ending
, 20

.

City or town, state, and ZIP code or country

Check type of shareholder filing the return:

Individual

Corporation

Partnership

S Corporation

Nongrantor Trust

Name of passive foreign investment company (PFIC) or qualified electing fund (QEF)

Employer identification number (if any)

Address (Enter number, street, city or town, and country.)

Tax year of company or fund: calendar year 20
tax year beginning
ending

Part I

or other

, 20
, 20

Estate

and

.

Elections (See instructions.)

A
B

Election To Treat the PFIC as a QEF. I, a shareholder of a PFIC, elect to treat the PFIC as a QEF. Complete lines 1a through 2c of Part II.
Deemed Sale Election. I, a shareholder on the first day of a PFIC’s first tax year as a QEF, elect to recognize gain on the
deemed sale of my interest in the PFIC. Enter gain or loss on line 10f of Part IV.

C

Deemed Dividend Election. I, a shareholder on the first day of a PFIC’s first tax year as a QEF that is a controlled foreign
corporation (CFC), elect to treat an amount equal to my share of the post-1986 earnings and profits of the CFC as an excess
distribution. Enter this amount on line 10e of Part IV.

D

Election To Extend Time For Payment of Tax. I, a shareholder of a QEF, elect to extend the time for payment of tax on
the undistributed earnings and profits of the QEF until this election is terminated. Complete lines 3a through 4c of Part II to
calculate the tax that may be deferred.
Note: If any portion of line 1a or line 2a of Part II is includible under section 551 or 951, you may not make this election.
Also, see sections 1294(c) and 1294(f) and the related regulations for events that terminate this election.

E

Election To Recognize Gain on Deemed Sale of PFIC. I, a shareholder of a former PFIC or a PFIC to which section 1297(e) applies, elect to
treat as an excess distribution the gain recognized on the deemed sale of my interest in the PFIC, or, if I qualify, my share of the PFIC’s post-1986
earnings and profits deemed distributed, on the last day of its last tax year as a PFIC under section 1297(a). Enter gain on line 10f of Part IV.

F

Election To Mark-to-Market PFIC Stock. I, a shareholder of a PFIC, elect to mark-to-market the PFIC stock that is
marketable within the meaning of section 1296(e). Complete Part III.

Part II

Income From a Qualified Electing Fund (QEF). All QEF shareholders complete lines 1a through 2c. If you are making
Election D, also complete lines 3a through 4c. (See page 5 of instructions.)

1a
1a Enter your pro rata share of the ordinary earnings of the QEF
b Enter the portion of line 1a that is included in income under
1b
section 551 or 951 or that may be excluded under section 1293(g)
c Subtract line 1b from line 1a. Enter this amount on your tax return as dividend income
2a
2a Enter your pro rata share of the total net capital gain of the QEF
b Enter the portion of line 2a that is included in income under
2b
section 551 or 951 or that may be excluded under section 1293(g)
c Subtract line 2b from line 2a. This amount is a net long-term capital gain. Enter this amount
in Part II of the Schedule D used for your income tax return. (See instructions.)
3a Add lines 1c and 2c
b Enter the total amount of cash and the fair market value of other
property distributed or deemed distributed to you during the tax
year of the QEF. (See instructions.)

2c
3a

3b

c Enter the portion of line 3a not already included in line 3b that is
attributable to shares in the QEF that you disposed of, pledged,
3c
or otherwise transferred during the tax year
d Add lines 3b and 3c
e Subtract line 3d from line 3a, and enter the difference (if zero or less, enter amount in brackets)
Important: If line 3e is greater than zero, and no portion of line 1a or 2a is includible in income
under section 551 or 951, you may make Election D with respect to the amount on line 3e.
4a
4a Enter the total tax for the tax year (See instructions.)
b Enter the total tax for the tax year determined without regard to
4b
the amount entered on line 3e
c Subtract line 4b from line 4a. This is the deferred tax, the time for payment of which is
extended by making Election D. See instructions
For Paperwork Reduction Act Notice, see page 7 of separate instructions.

1c

Cat. No. 64174H

3d
3e

4c
Form

8621

(Rev. 12-2004)

3
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 8621, PAGE 2 of 2
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20. INK: BLACK
FLAT SIZE: 216mm (81⁄2 ")
279mm (11")
PERFORATE: (NONE)

PRINTS: HEAD to HEAD

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Page

Form 8621 (Rev. 12-2004)

Part III
5
6
7

Enter the fair market value of your PFIC stock at the end of the tax year
Enter your adjusted basis in the stock at the end of the tax year
Excess. Subtract line 6 from line 5. If a gain, stop here. Include this amount as ordinary income
on your tax return. If a loss, go to line 8
Enter any unreversed inclusions (as defined in section 1296(d)). See instructions.
Enter the smaller of line 7 or line 8. Include this amount as an ordinary loss on your tax return

8
9

Part IV

2

Gain or (Loss) From Mark-to-Market Election (See page 5 of instructions.)
5
6
7
8
9

Distributions From and Dispositions of Stock of a Section 1291 Fund (See page 6 of instructions.)
Complete a separate Part IV for each excess distribution (see instructions).

10a Enter your total distributions from the section 1291 fund during the current tax year with respect to the
applicable stock. If the holding period of the stock began in the current tax year, see instructions

b Enter the total distributions (reduced by the portions of such distributions that were excess
distributions but not included in income under section 1291(a)(1)(B)) made by the fund with
respect to the applicable stock for each of the 3 years preceding the current tax year (or if
shorter, the portion of the shareholder’s holding period before the current tax year)
c Divide line 10b by 3. (See instructions if the number of preceding tax years is less than 3.)
d Multiply line 10c by 125% (1.25)
e Subtract line 10d from line 10a. This amount, if more than zero, is the excess distribution with respect to
the applicable stock. If zero or less and you did not dispose of stock during the tax year, do not complete
the rest of Part IV. See instructions if you received more than one distribution during the current tax year.
Also, see instructions for rules for reporting a nonexcess distribution on your income tax return

f Enter gain or loss from the disposition of stock of a section 1291 fund or former section 1291
fund. If a gain, complete line 11. If a loss, show it in brackets and do not complete line 11
11a Attach a statement for each distribution and disposition. Show your holding period for each
share of stock or block of shares held. Allocate the excess distribution to each day in your
holding period. Add all amounts that are allocated to days in each tax year.
b Enter the total of the amounts determined in line 11a that are allocable to the current tax year
and tax years before the foreign corporation became a PFIC (pre-PFIC tax years). Enter these
amounts on your income tax return as other income
c Enter the aggregate increases in tax (before credits) for each tax year in your holding period
(other than the current tax year and pre-PFIC years). (See instructions.)
d Foreign tax credit. (See instructions.)
e Subtract line 11d from line 11c. Enter this amount on your income tax return as “additional
tax.” (See instructions.)
f Determine interest on each net increase in tax determined on line 11e using the rates and
methods of section 6621. Enter the aggregate amount of interest here. (See instructions.)

Part V

2

Deferred tax
Interest accrued on deferred
tax (line 3) as of the filing date

5
6

Event terminating election
Earnings distributed or deemed
distributed during the tax year
Deferred tax due with this
return
Accrued interest due with
this return
Deferred tax outstanding after
partial termination of election
Interest accrued after partial
termination of election

8
9
10

10e
10f

11b
11c
11d
11e
11f

(ii)

(iii)

(iv)

(v)

(vi)

Tax year of outstanding
election
Undistributed earnings to
which the election relates

3
4

7

10b
10c
10d

Status of Prior Year Section 1294 Elections and Termination of Section 1294 Elections
Complete a separate column for each outstanding election. Complete lines 9 and 10 only if there is a
partial ter mination of the section 1294 election.
(i)

1

10a

Form

8621

(Rev. 12-2004)