PFIC / Form 8621 Checker & Regime Analyzer

Determine PFIC status using the income and asset tests. Compare all three tax regimes: Excess Distribution (§1291), QEF Election (§1293), and Mark-to-Market (§1296). Form 8621 filing requirements. 2026.
IRC §1291 (Excess Distribution) IRC §1293-1295 (QEF) IRC §1296 (Mark-to-Market) IRC §1297-1298 (PFIC Definition) Form 8621
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What is a PFIC? A Passive Foreign Investment Company is any foreign corporation that meets either: (1) the Income Test - 75%+ of gross income is passive income (dividends, interest, rents, royalties, gains), or (2) the Asset Test - 50%+ of assets by value produce or are held to produce passive income. IRC §1297(a). Common examples: foreign mutual funds, foreign ETFs, foreign holding companies with passive investments. Canadian TFSAs and certain Israeli Keren Hishtalmut accounts may also trigger PFIC rules. The tax consequences of PFIC ownership without proper elections are severe.
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Foreign Entity Information

Foreign mutual funds and ETFs are almost always PFICs. Foreign operating companies depend on the income and asset tests.
If CFC, the PFIC overlap rule under IRC §1297(d) may prevent the §1291 excess distribution regime from applying to US shareholders subject to Subpart F.
Marketability is required for the Mark-to-Market (MTM) election under IRC §1296. Non-marketable PFICs cannot elect MTM.
QEF election under IRC §1295 requires the fund to furnish an annual PFIC statement. Most foreign funds do not provide this.
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PFIC Status Tests  •  IRC §1297(a)

80%
Passive income = dividends, interest, rents, royalties, annuities, net gain from passive property. IRC §1297(b). PFIC threshold: 75%+.
70%
Passive assets = assets that produce or are held to produce passive income. PFIC threshold: 50%+. IRC §1297(a)(2).
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Investment Details

Total amount paid for the PFIC shares (USD)
Current FMV of your PFIC holding (USD)
Number of tax years held (including current year)
Total distributions (dividends, returns of capital) received in the current tax year
Average of distributions received in the 3 prior tax years. Used to calculate excess distributions. IRC §1291(b)(2).
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Results & Regime Comparison

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