PFIC reporting rules do not apply to certain marked to market stock
On Wednesday, the IRS announced that it will amend the regulations governing the reporting requirements for U.S. persons who hold stock in passive foreign investment companies (PFICs). The amendments will provide that, if a taxpayer marks to market PFIC stock under Sec. 475 or any Code section other than Sec. 1296, the taxpayer will not be required to file Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund (Notice 2014-51).
PFIC shareholders may be subject to one of three tax regimes: (1) the Sec. 1291 excess-distribution rules; (2) the Sec. 1293 qualified-electing-fund rules; or (3) the Sec. 1296 mark-to-market rules. All PFIC shareholders are currently required to file Form 8621 under Sec. 1298(f). The period of limitation for assessing tax for a tax year does not expire until three years after the date the IRS receives the form. Read more on the Journal of Accountancy.