What is PFICS? PFIC is a Passive Foreign Investment Company.
They are complex investments for US citizens. If an investment is a PFIC there are several complex rules, but generally that investment earns most of its income through passive activities such as owning shares that throw off dividend income or royalty income. Income passive in nature is not an operating business.
A PFIC is simply a “pooled investment” registered outside the United States encompassing mutual funds, exchange-traded funds (EFTs), closed-end funds, hedge funds, insurance products, and non-U.S. pension plans.
Having so-called PFICs results in punitive tax. FATCA makes it nearly impossible for the IRS to not tax them. Do you have PFICs? Or are you unsure? Be well-informed, contact Americans Overseas for an affordable financial service adapted to your wishes, investment, and knowledge. Avoid this punitive tax.
Americans Overseas offers a large independent network of US tax accountants and financial planners, specialized for Americans living abroad. Based on your personal situation, we provide information and introduce you to the appropriate expert in our Americans Overseas network, free of charge and free of any obligation.