Form 8621

Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund

Tax form 8621 is used to report income from foreign mutual funds, also referred to as passive foreign investment companies (PFICs). There are three methods of PFIC taxation: excess distribution, mark to market (MTM), and qualified electing fund (QEF). PFICs are also reportable even if there is no income so long as the appropriate filing threshold is met. For example, a taxpayer with no PFIC income but whose PFICs together are worth more than $25,000 must file Form 8621 to report the PFICs.