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Draft PFIC reporting form signals intent to require annual reporting; potential effect for exempt organizations not certain

August 14, 2012 | No. 2012-87


The IRS posted 2012 draft PFIC reporting form—Form 8621 (Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund)—signaling an intent generally to require annual reporting, and including additional information relevant to coordination with annual Form 8938 (Statement of Specified Foreign Investment Assets) reporting.

The draft Form 8621 adds a new Part I that would require filers to provide a summary of “Annual Information” including:

  • A description of shares held in the specific PFIC
  • Dates of any stock acquisitions during the year
  • Number of shares held at the end of the year
  • A valuation of the shares held and the amounts taken into account in applying section 1291, 1293, or 1296 for the filer’s tax year

The IRS did not release draft instructions for draft Form 8621, and therefore did not provide any guidance on issues such as whether it will retain current exceptions from the requirements to file Form 8621 by tax-exempt U.S. entities that would not be subject to U.S. taxation under subchapter F on actual dividends from a PFIC .

Because instructions have not yet been released, it is uncertain as to how the new rules would affect tax-exempt organizations that otherwise would not be required to file Form 8621.

Read an August 2012 report prepared by KPMG LLP: Draft PFIC reporting form signals intent to require annual reporting

 

For more information, contact Rick Speizman, National Partner-In-Charge, KPMG’s Exempt Organizations Tax Practice (ExoTax), at (202) 533-3084

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