Overview of Passive Foreign Investment Companies (PFICs)
Author: Robert J. Misey
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2027 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
With the globalization of investments, many U.S. individuals (not only high-net worth individuals) are investing in foreign entities. If these foreign entities constitute PFICs, the U.S. individuals will have to deal with one of the more complex tax regimes. This course will show how to plan and comply with taxation of a PFIC.
Publication Date: July 2024
Topics Covered
- The Three Anti-Deferral Regimes
- What is a PFIC?
- Passive Income is Foreign Personal Holding Company Income Under Subpart F
- Qualified Electing Fund
- The Excess Distribution Regime
- Compliance on Form 8621
Learning Objectives
- Determine whether a foreign corporation is a PFIC
- Identify how to comply with PFIC reporting on Form 8621
- Identify one of the three anti-deferral regimes
- Identify the percent used in the income test for a PFIC
- Identify the part of Form 8621 that includes information about elections
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
