Compass Tax Educators

This course is offered Direct-to-On-Demand and is NOT included with a PASS.

This course provides a comprehensive overview of the tax law governing passive foreign investment companies (PFICs), with a focus on both conceptual understanding and practical application. We begin by explaining what qualifies as a PFIC, how to identify them, and when Form 8621 must be filed. From there, the course moves into the mechanics of all three taxation regimes — the default §1291 excess distribution rules, the qualified electing fund (QEF) election, and the mark-to-market (MTM) election — comparing their benefits, drawbacks, and computational requirements. Practitioners will work through Form 8621 completion and return reporting under each regime. 

Learning Objectives

• Identify passive foreign investment companies, explain the criteria used to classify them, and determine when a taxpayer has a Form 8621 filing obligation.
• Describe the §1291 excess distribution mechanism, compute both excess and non-excess distribution amounts, and complete and report a basic Form 8621 under the default regime.
• Analyze the QEF election, evaluate the benefits and drawbacks of it to the §1291 default, and complete and report a basic Form 8621 under this elective regime.
• Analyze the mark-to-market election, evaluate the benefits and drawbacks of it relative the the §1291 default, and complete and report a basic Form 8621 under this elective regime.

Education Information
IRS Program Number: NMVBP-T-00338-26-S
Credit hours: 4 NASBA CPE / 4 IRS CE
Prerequisite: None
Advanced Preparation: None
Program Level: Intermediate
Delivery Method: QAS Self-Study (NASBA); On-Demand (IRS)
Field of Study: Taxes (NASBA); Federal Tax Topics/Federal Tax Related Matters (IRS)

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Course expires one year after purchase.

Instructor: Mary Beth Lougen, EA, USTCP Learn more about our instructors here.

All continuing education credit is provided through Gregory & Associates, Inc. which is doing business as Compass Tax Educators. Click here for more information regarding our refund, education and complaint policies.