GLOSSARY · VISA-HOLDER FINANCE
PFIC (passive foreign investment company)
A non-US company or fund whose income or assets are mostly passive. Most mutual funds and ETFs domiciled outside the US qualify, and for a US tax resident the default rules tax their gains harshly, with an interest charge, reported on Form 8621.
Also called: pfic, foreign mutual fund tax, form 8621
COMPUTE IT WITH YOUR NUMBERS
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CHAPTER · ARRIVING AND WORKING ON A VISA · FOUNDATIONSFiling Your Return: Form 1040 or 1040-NR, and State TaxesCHAPTER · TAXES, MONEY BACK HOME AND REPORTING · STRATEGIESForeign Mutual Funds and the PFIC RulesRELATED TERMS
SOURCES
- Instructions for Form 8621. Internal Revenue Service.