IRS Form 8621

GuestPoster279Guest27 November 2020 22:47:41

Greetings:
I stumbled onto the existence of this IRS form 8621.
It’s very daunting and confusing.
It somehow applies to non-US investments.
The IRS estimate to fill out and submit is 20 hours.
( I read publication 54 for US citizens living abroad, a few times and don’t recall any reference to 8621, but it exists).

Is anyone familiar with this form and the inherent regulation?

Regards

abthree Brazil Expert

Member since 28 December 2017

abthreeBrazil Expert29 November 2020 18:02:37

6330

Paul,

Note that this form only applies to American shareholders in Passive Foreign Investment Companies (PFICs). Here's some useful clarification on PFICs:

https://www.investopedia.com/terms/p/pfic.asp

This might be a rather unusual investment type for an average expat to be holding; if you think that you might have qualifying Brazilian investments, though, this would be a good time to consult your tax adviser in the US.

chistletoe Active member

Member since 07 March 2020

chistletoeActive member29 November 2020 19:01:25

I am holding stock in Vale S.A. but purchased it through USA exchanges and its hypothecated in my US brokerage account so the IRS knows about it but the Brazilian authorities don`t .....probably the easiest way to do something like this for so long as I still have to file in the USA....

by the way, its working very nicely since word got out that Elon is interested in a long term nickel supply contract with them .....

I also have a few shares in the EWZ ETF, with similar arrangement.

GuestPoster279 Guest

GuestPoster279Guest01 December 2020 12:29:27

Thanks to you both for your input.

I stumbled upon a US based accounting firm Thun Financial.
Don’t know them but have read some of their articles and they seem to hold good info.
Again I do not personally know them.
Here is a link from them on this subject.
https://thunfinancial.com/PDF/2020-Why- … -Funds.pdf
Regards
Paul