Who Must File

Qualifying Insurance Corporation A U.S. person that owns stock (or holds an option to purchase stock) of a foreign corporation and elects to treat such stock as the stock of a qualifying insurance corporation under the alternative facts and circumstances test within the meaning of section 1297(f)(2) and Regulations section 1.1297-4(d) must file a limited-information Form 8621. For details, see Election To Be Treated as a Qualifying Insurance Corporation , later.

A separate Form 8621 must be filed for each PFIC in which stock is held directly or indirectly. In the case of a chain of ownership, under the five circumstances described above, unless otherwise provided, if the shareholder owns one PFIC and through that PFIC owns one or more other PFICs, the shareholder must file a Form 8621 for each PFIC in the chain.

A single Form 8621 may be filed with respect to a PFIC to report the information required by section 1298(f) (that is, Part I), as well as to report information in Parts III through VI of the form and to make elections in Part II of the form. For example, a U.S. person that has made a section 1296 mark-to-market election with respect to a PFIC will file a single Form 8621 and complete Part I and Part IV.

• A direct or indirect owner of a pass-through entity where the pass-through entity itself is a direct or indirect shareholder of a PFIC.

For more information on determining whether a U.S. person is an indirect shareholder, see Regulations section 1.1291-1(b)(8). For purposes of these rules, a pass-through entity is a partnership, S corporation, trust, or estate.

However, a U.S. person that owns stock of a PFIC through a tax-exempt organization or account described in the list below is not treated as a shareholder of the PFIC.

Indirect shareholder. Generally, a U.S. person is an indirect shareholder of a PFIC if it is:

• A 50%-or-more shareholder of a foreign corporation that is not a PFIC and that directly or indirectly owns stock of a PFIC,

• A shareholder of a PFIC where the PFIC itself is a shareholder of another PFIC, or

Passive Foreign Investment Corporation (PFIC) Generally, a U.S. person that is a direct or indirect shareholder of a PFIC must file Form 8621 for each tax year under the following five circumstances if the U.S. person:

• An organization or an account that is exempt from tax under section 501(a) because it is described in section 501(c), 501(d), or 401(a).

• A state college or university described in section 511(a) (2)(B).

1. Receives certain direct or indirect distributions from a PFIC,

• A plan described in section 403(b) or 457(b).

• An individual retirement plan or annuity as defined in section 7701(a)(37).

2. Recognizes gain on a direct or indirect disposition of PFIC stock,

3. Is reporting information with respect to a Qualified Electing Fund (QEF) or section 1296 mark-to-market election,

Interest holder of pass-through entities. In general, the following interest holders must file Form 8621, unless an exception applies.

4. Is making an election reportable in Part II of the form, or

5. Is required to file an annual report pursuant to section 1298(f). See the Part I instructions, later, for more information regarding the person that must file pursuant to section 1298(f).

• A qualified tuition program described in section 529 or

• A qualified ABLE program described in section 529A.

Interest holder of pass-through entities. In general, the following interest holders must file Form 8621, unless an exception applies.

1. A U.S. person that is an interest holder of a foreign pass-through entity that is a direct or indirect shareholder of a PFIC.

Instructions for Form 8621 (Rev. 12-2025) Catalog Number 10784P Dec 8, 2025 Department of the Treasury Internal Revenue Service www.irs.gov

2. A U.S. person that is considered (under sections 671 through 679) the shareholder of PFIC stock held in trust.

3. A U.S. partnership, S corporation, U.S. trust (other than a trust that is subject to sections 671 through 679 for the PFIC stock), or U.S. estate that is a direct or indirect shareholder of a PFIC.

Note: U.S. persons that are interest holders of pass-through entities described in 3 above must file Form 8621 if the pass-through entity fails to file such form or the U.S. person is required to recognize any income under section 1291.