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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (89922)	2/28/2001 12:35:07 AM
From: Mark Adams	Respond to of 132070

I was reading the ASA annual report, and they mention they are considered a PFIC. Any comments on this allowed? thestreet.com PFIC Follow-Up Nice article on passive foreign investment companies. But one burning question was left unanswered. Do foreign closed-end funds count as PFICs for these purposes? I own closed-ends that trade in Canada and the U.K. Is that a big mistake? -- Alan Lewis Alan, For U.S. tax purposes, both open-end and closed-end foreign mutual funds are treated as passive foreign investment companies. That means they will be subject to the same ugly PFIC rules, notes Bruce Reynolds, a partner in the international tax services group at Deloitte & Touche in Washington. Regardless of your option, IRS Form 8621 -- Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund -- must be filed by all U.S. citizens with PFIC investments. But it's so complicated that certified public accountants like Jacobs can make a good living just filling them out. He charges anywhere from $900 to $3,000 and passes the completed form on to the client's regular accountants. If you opt not to file this monster form, expect to pay a $10,000 fine. thestreet.com