US resident with Canadian non-registered segregated fund. Is this a PFIC?

[monkey444]

I am a Canadian citizen living in the U.S. and a U.S. tax resident. In 2015, after moving to the U.S., I ended up in a Canada Life non registered segregated fund through a Canadian advisor. This is not an RRSP and not a TFSA. It is a taxable non registered account.

I am now getting conflicting CPA advice on the U.S. treatment.

One CPA believes the segregated fund is likely a PFIC for U.S. tax purposes and is advising that I sell in 2026 and file Form 8621 for both 2025 and 2026.

My current CPA has told me segregated funds are more of a gray area because they are insurance contracts and not plain mutual funds, so in his view Form 8621 may not be required at all. Just keep filing the FBAR.

I am totally confused and not sure how risky this is to keep that segregated fund in Canada because I'd be taking a big hit to sell it, pay the taxes and CPA fees, and then bring it to the U.S. It's currently at 80k CAD. And then I start getting nervous about the threat of the IRS knocking on my door for the rest of my life. I don't even know what the chances would be.

Thank you.