Start Year for Form 8621?
Moderator: Mark T Serbinski CA CPA
Start Year for Form 8621?
I was unaware of form 8621 until this past weekend when I read something about it on a Canadian financial discussion forum. The author of the post, citing a Canadian financial adviser, said, "Starting with your 2011 US return...". Looking at the discussion here at the Serbinski forum, I'm not sure that I wasn't supposed to report my Canadian mutual funds on 8621 beginning with the taxes I filed last spring for 2010. Could someone please set me straight on this? Thanks.
I was also wondering about this. According to this article,
http://rewardlaw.com/Publications/Artic ... PFICs.aspx
Bottom part: "The current instructions to Form 8621 limit the filing requirement to years in which the taxpayer (1) receives direct or indirect distributions from the PFIC, (2) recognizes gain on disposition of the taxpayer’s interest in the PFIC, or (3) makes a QEF or mark-to-market election. However, Section 521 of the Hiring Incentives to Restore Employment Act of 2010 amends Code Section 1298 to require any US person who owns an interest in a PFIC to “file an annual report containing such information as the Secretary may require.†Code Section 1298(f). [b]The instructions to Form 8621 have not been amended to reflect this change in the statute which was effective March 18, 2010. The Internal Revenue Service has released guidance which confirms that PFIC investors who were not required to file Form 8621 before enactment of Code Section 1298(f) will not be required to file the Form for tax years beginning before the date of enactment solely as a result of the change in law. See Notice 2010-34, 2010-17 IRB 612 (April 6, 2010). [/b]
http://rewardlaw.com/Publications/Artic ... PFICs.aspx
Bottom part: "The current instructions to Form 8621 limit the filing requirement to years in which the taxpayer (1) receives direct or indirect distributions from the PFIC, (2) recognizes gain on disposition of the taxpayer’s interest in the PFIC, or (3) makes a QEF or mark-to-market election. However, Section 521 of the Hiring Incentives to Restore Employment Act of 2010 amends Code Section 1298 to require any US person who owns an interest in a PFIC to “file an annual report containing such information as the Secretary may require.†Code Section 1298(f). [b]The instructions to Form 8621 have not been amended to reflect this change in the statute which was effective March 18, 2010. The Internal Revenue Service has released guidance which confirms that PFIC investors who were not required to file Form 8621 before enactment of Code Section 1298(f) will not be required to file the Form for tax years beginning before the date of enactment solely as a result of the change in law. See Notice 2010-34, 2010-17 IRB 612 (April 6, 2010). [/b]