The Internal Revenue Service expects to "begin in earnest" this year on final regulations for partnerships that hold stock in passive foreign investment companies (PFICs). U.S. taxpayers with investments in PFICs often face complex and punitive tax rules. This year, the IRS is focusing on providing clarity and guidance to taxpayers who hold investments in these types of companies.
NEW YORK, March 21, 2024 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI) is considered a PFIC. Thinkific Labs Inc. (THNC-T) is also attempting to address issues related to excess cash reserves. The current taxation of income from qualified electing funds under IRC section 1293 is another key consideration for taxpayers with investments in PFICs.
The IRS has recently released final and proposed regulations for passive foreign investment companies, aiming to streamline the tax treatment of these entities. Kerr Russell's Patrick Haddad has weighed in on the IRS's proposals to the Internal Revenue Code regarding ownership determination in PFICs. On January 25, 2022, the IRS and the Department of the Treasury released regulations that impact how PFICs are taxed.