Paperwork Reduction Act Notice.
We ask for the information on this form to carry out the Internal
Revenue laws of the United States. You are required to give us the
information. We need it to ensure that you are complying with these
laws and to allow us to figure and collect the right amount of tax.
You are not required to provide the information requested on a form
that is subject to the Paperwork Reduction Act unless the form
displays a valid OMB control number. Books or records relating to a
form or its instructions must be retained as long as their contents
may become material in the administration of any Internal Revenue law.
Generally, tax returns and return information are confidential as
required by section 6103.
The time needed to complete and file this form will vary depending
on individual circumstances. The estimated average time is:
If you have comments concerning the accuracy of these time
estimates or suggestions for making this form simpler, we would be
happy to hear from you. You can write to the Tax Forms Committee,
Western Area Distribution Center, Rancho Cordova, CA 95743–0001.
Do not send the tax form to this office. Instead, see
When and Where To File on page 1.
Final regulations under sections 1295 and 1296 have been issued
that provide guidance to passive foreign investment company (PFIC)
shareholders.
- A shareholder is no longer required to file a duplicate copy
of Form 8621 with the Internal Revenue Service Center, Philaldelphia,
PA, when the shareholder makes the section 1295 election to be treated
as a QEF or reports its annual pro rata share of the ordinary earnings
and net capital gain of the QEF. See When and Where To File
below and the instructions for how to make Election A on page 3. For
effective dates, see Regulations section 1.1295-1(k).
- A shareholder is not required to include in income its pro
rata share of ordinary earnings and net capital gain from a QEF for a
tax year in which the foreign corporation is not treated as a PFIC.
However, the section 1295 election is not terminated. If the foreign
corporation is treated as a PFIC in any subsequent tax year, the
shareholder's original section 1295 election is still in effect and
the annual income inclusion and reporting requirements will apply. For
more information, see Regulations section 1.1295-1(c)(2). For
effective dates, see Regulations section 1.1295-1(k).
- The definition of “marketable stock” for purposes of
making the mark-to-market election under section 1296 has been
clarified. See Regulations section 1.1296-1(e) and Mark-to-Market
Election for PFIC Stock on page 2.
