In order to use and file Form 8621 properly, with TurboTax, a taxpayer would want to complete the rest of their tax return in TurboTax, fill out Form 8621 manually, and then “insert” the completed Form 8621 into their tax return documents (using Attachment Sequence Number 69).
What is a Section 1291 Fund?
Section 1291 Fund A PFIC is a section 1291 fund if: The shareholder did not elect to treat the PFIC as a QEF or make a mark-to-market election with respect to the PFIC, or. The PFIC is an unpedigreed QEF (as defined in Regulations section 1.1291-9(j)(2)(iii)).
What do you need to know about form 8621?
About Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund. A U.S. person that is a direct or indirect shareholder of a passive foreign investment company (PFIC) files Form 8621 if they:
When to file Form 8621 for a PFIC?
About Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund A U.S. person that is a direct or indirect shareholder of a passive foreign investment company (PFIC) files Form 8621 if they: Receive certain direct or indirect distributions from a PFIC.
Do you need to file Form 8621 for mutual funds in Canada?
However, Forms 8621 may be required for any foreign mutual fund investments held in TFSAs and RESPs. Canadian mutual funds are generally treated as Section 1291 funds unless elections are made on Form 8621 for either QEF (Qualified Electing Fund, Section 1295) or Mark to Market (Section 1296).
What is the penalty for not filing Form 8621?
Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Election Fund The civil penalty for failure to report an item on one of these forms is generally at a minimum $10,000 per violation. For example, a taxpayer who was required to but failed to file six Forms 5471…
