PFICs and Foreign Assets
Passive foreign investment company (PFIC) rules and foreign asset reporting requirements can create complex tax and compliance issues for U.S. persons with foreign investments.
Format
Online
NASBA Field of Study
Taxes
Level
Intermediate
CPE Credits
3
Author(s)
AICPA staff
Availability
1 year
Product Number
USITPFA26SSO
Understanding PFIC exposure
PFIC rules can apply broadly to foreign corporations, even when a U.S. shareholder owns only a small interest. Learners will learn about the income and asset tests used to identify PFICs and understand how passive income, passive assets, look-through rules, and annual status determinations affect classification.
Comparing PFIC tax regimes
Learners will examine the default excess distribution regime and compare it with the qualified electing fund (QEF) and mark-to-market (MTM) regimes. Learners will also cover how elections are made, when they apply, and why timely reporting and access to PFIC information can materially affect the tax result for U.S. shareholders.
Managing foreign asset reporting requirements
Foreign asset reporting obligations are covered, including:
- Form 8621
- Report of Foreign Bank and Financial Accounts (FBAR)
- Form 8938
- Foreign trust forms
Learners will also consider how missed filings can affect statutes of limitation, penalties, and financial statement considerations.
Hands-on learning to develop your skills
Practical examples illustrate how PFIC classification and excess distribution calculations can affect taxpayers. Reporting-focused content connects PFIC ownership with broader foreign asset and trust compliance obligations.
Note: This program includes content from the U.S. International Tax Certificate.
Who Will Benefit
- Tax practitioners advising U.S. persons with foreign investments
- CPAs and accounting professionals working with international tax compliance
- Professionals responsible for identifying PFIC issues and related reporting requirements
- Trust and estate professionals with clients holding foreign funds or foreign assets
Key Topics
- Passive foreign investment companies (PFICs)
- PFIC income and asset tests
- Excess distribution regime
- QEF election
- MTM election
- PFIC look-through rules
- Form 8621 reporting
- FBAR, Form 8938, and foreign trust reporting
Learning Outcomes
- Identify the structure of passive foreign investment companies (PFICs).
- Differentiate among PFIC regimes.
- Identify PFIC reporting requirements and foreign asset reporting requirements.
Group ordering for your team
2 to 5 registrants
Save time with our group order form. We’ll send a consolidated invoice to keep your learning expenses organized.
Start order6+ registrants
We can help with group discounts. Email client.support@aicpa-cima.com
US customers call 1-800-634-6780 (option 1)
The Association is dedicated to removing barriers to the accountancy profession and ensuring that all accountancy professionals and other members of the public with an interest in the profession or joining the profession, including those with disabilities, have access to the profession and the Association's website, educational materials, products, and services.The Association is committed to making professional learning accessible to all product users. This commitment is maintained in accordance with applicable law. For additional information, please refer to the Association's Website Accessibility Policy. As part of this commitment, this product is closed-captioned. For additional accommodation requests please contact adaaccessibility@aicpa-cima.com and indicate the product that you are interested in (title, etc.) and the requested accommodation(s): Audio/Visual/Other. A member of our team will be in contact with you promptly to make sure we meet your needs appropriately.