Question

Oversea investment link insurance policy

Forum|Forum|1 year ago
February 20, 2025
1 reply
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I owned several oversea investment link insurance policies. They were acquired before i relocate to work in US. There are no tax treaty, the policies does not clearly spell out the insurance portion except the death and surrender coverage.

My questions:

1. Do I need to file form 8621 for the funds within each policy?

2 If i have to file form 8621, which section to fill up?

3. How is the calculation of Section V, line 15 and 16?

Thank you.

Ask the Experts - Deciphering - Feb 2025

DawnC

Employee

Do any of the below apply to you? If so, you need to file Form 8621 (Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund). A U.S. person that is a direct or indirect shareholder of a passive foreign investment company (PFIC) files Form 8621 if they:

Receive certain direct or indirect distributions from a PFIC.
Recognize a gain on a direct or indirect disposition of PFIC stock.
Are reporting information with respect to a QEF or section 1296 mark-to-market election.
Are making an election reportable in Part II of the form.
Are required to file an annual report pursuant to section 1298(f).

Complete a separate Part V for each excess distribution. The form and instructions are linked below. For Lines 15 and 16, the calculations are linked here.

Form 8621

Instructions for Form 8621

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