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Instructions for Form 8621-A

Department of the Treasury

Internal Revenue Service

(Rev. October 2015)

(Use with the December 2013 revision of Form 8621-A.)

Return by a Shareholder Making Certain Late Elections To End Treatment as a

Passive Foreign Investment Company

year and ending on the date the late purging

Section references are to the Internal Revenue Code

Sign and date the form in the spaces

unless otherwise noted.

election is filed with the IRS. See the

provided at the bottom of page 2 of the form.

instructions for Part I, later, for details.

If the election year is a closed taxable

Future Developments

year, file the closing agreement on page 3 of

How To Complete Form

the form in duplicate. Both copies must

For the latest information about

contain original signatures. See Closing

8621-A

developments related to Form 8621-A and

Agreement, later, for details.

its instructions, such as legislation enacted

The shareholder makes the applicable

Complete the balance sheet on page 4 of

after they were published, go to

election in Part I of the form. The shareholder

the form, if applicable (that is, if required by

form8621a.

then provides basic information about the

line 4 or line 8 of the form).

election in Part II or Part III of the form and

Keep a copy of the form for your records.

General Instructions

computes the tax and interest due in Part IV

Make your check or money order payable

of the form.

to “United States Treasury.” Include your

Purpose of Form

identifying number and “Form 8621-A” on

If the election year (defined below) is a

your payment.

closed taxable year, the taxpayer must enter

A U.S. person that is a direct or indirect

into a closing agreement (page 3 of the form)

shareholder of a former Passive Foreign

If Form 8621-A does not include full

to agree to eliminate any prejudice to the

Investment Company (PFIC) or a Section

payment of the amount shown on

interests of the U.S. government as a

1297(e) PFIC is treated for tax purposes as

line 21 of the form, the form will not

CAUTION

consequence of the taxpayer's inability to file

holding stock in a PFIC and therefore

be processed.

an amended return for the election year.

continues to be subject to taxation under

section 1291 unless the shareholder makes

Definitions

The closing agreement must be

a purging election under section 1298(b)(1).

filed in duplicate and both copies

Controlled Foreign Corporation

must contain original signatures.

A purging election under section 1298(b)

CAUTION

See Closing Agreement, later, for additional

(CFC)

(1) is:

information.

A deemed dividend election or a deemed

See section 957(a) for definition.

sale election made with respect to a former

A separate Form 8621-A must be filed

PFIC under the rules of Regulations section

CFC Overlap Rules

for each PFIC for which a late purging

1.1298-3(c) or

election is being made. See Chain of

A deemed dividend election or a deemed

A 10% U.S. shareholder (defined in section

ownership below for specific filing

sale election made with respect to a Section

951(b)) of a CFC that is also a PFIC that

requirements.

1297(e) PFIC under the rules of Regulations

includes in income its pro rata share of

section 1.1297-3(e).

subpart F income of the CFC generally will

Chain of ownership. If the shareholder

owns one PFIC and through that PFIC owns

not be subject to the PFIC provisions for the

A timely filed purging election is made on

one or more other PFICs, the shareholder

same stock during the qualified portion of the

Form 8621. This Form 8621-A is used only to

must file a separate Form 8621-A for each

shareholder's holding period of the stock in

make a late purging election under section

Section 1297(e) PFIC or former PFIC in the

the PFIC. This exception does not apply to

1298(b)(1).

chain for which a late purging election is

option holders. For more information, see

A late purging election is a purging

made. File these Forms 8621-A together.

section 1297(d).

election under section 1298(b)(1) that is

Qualified portion of holding period. For

Where To File

made:

purposes of section 1297(d), the qualified

In the case of a shareholder of a former

File Form 8621-A with:

portion of the shareholder's holding period in

PFIC, after 3 years from the due date, as

a corporation is the portion of the

extended, of the tax return for the taxable

Internal Revenue Service

shareholder's holding period:

year that includes the termination date, or

DP 8621-A

That is after December 31, 1997, and

In the case of a shareholder of a section

Ogden, UT 84201

During which the shareholder is a U.S.

1297(e) PFIC, after 3 years from the due

shareholder under section 951(b) and the

date, as extended, of the tax return for the

Filing Checksheet

corporation is a CFC.

taxable year that includes the CFC

qualification date.

CFC qualification date. The CFC

Be sure to:

qualification date is the first day on which the

Check the applicable box in Part I of the

See Regulations sections 1.1298-3(e) or

qualified portion of the shareholder's holding

form that corresponds to the election you are

1.1297-3(e) for more details.

period in the Section 1297(e) PFIC begins,

making.

as determined under section 1297(d).

Complete the applicable lines in Part II or

Generally, the amount due with respect to

III of the form (along with any required

a late purging election is computed in the

Section 1297(e) PFIC. A foreign

attachments requested on any of those lines)

same manner as if the purging election had

corporation is a Section 1297(e) PFIC with

as requested at the end of the election

been timely filed. However, the taxpayer

respect to a shareholder if:

description in Part I of the form.

must also pay interest on the amount due

1. The foreign corporation qualifies as a

determined for the period beginning on the

Complete Part IV of the form along with

PFIC under section 1297(a) on the first day

due date (without extensions) for the

any required attachments requested on any

on which the qualified portion of the

taxpayer's income tax return for the election

of the lines in Part IV.

Oct 02, 2015

Cat. No. 39731G

Instructions For Form 8621-A - Return By A Shareholder Making Certain Late Elections To End Treatment As A Passive Foreign Investment Company

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