PFIC Reporting
In more detail
Form 8621 is the information return used to report an interest in a passive foreign investment company and to make or reflect elections about how that investment is taxed. The PFIC regime targets deferral through foreign pooled investments, and because the definition turns on the nature of the underlying income and assets, many ordinary non-US funds fall within it. This is why Americans in the UK who hold common UK investment funds so often encounter Form 8621 as part of managing a portfolio across two tax systems.
Does Form 8621 apply to your situation?
Cross-border tax turns on the detail of your circumstances. Book a consultation and we'll tell you exactly where you stand.