Services
PFIC HELP
Many offshore funds meet the definition of PFIC for U.S. tax purposes. Some even meet the definition of a CFC.
Whether your offshore investment is eligible to be taxed in the U.S. under a valid QEF election or whether it might default to taxation under section 1291 Excess Distribution rules depends on whether the Passive Foreign Investment Company (PFIC) regime is in force for your subscription or whether the Controlled Foreign Corporation (CFC) regime is in force. We investigate your exposure.
- If the fund is a CFC, we determine whether you meet the definition of a U.S. shareholder of a CFC for your subscription and tax year.
- If the PFIC regime is in force for your subscription and tax year, we determine whether a QEF election is supportable based on the fund’s actual reporting. We investigate underlying data and whether the fund’s reporting on PFIC Annual Information Statements fully meet U.S. requirements. We identify structural flaws that could invalidate the PFIC AIS for U.S. tax purposes.
This clarity allows you and your tax advisor to understand the reporting posture and evaluate the available paths forward.
PFIC Exposure Diagnostic
We review the fund’s accounting records, portfolio holdings, and PFIC Annual Information Statements to identify gaps, confirm compliance, and determine whether a U.S. QEF election is supportable.
Tax Impact Modeling
Our cross border CPA partner quantifies the tax and interest impact under § 1291 for your actual holding period and compares it to the tax that would apply under QEF treatment using the same timeline.
Deemed Sale Elections
If you and your tax advisor decide that a corrective filing is appropriate, our CPA partner prepares the Deemed Sale election and related Form 8621 filings.