This is one of the most common questions we receive from clients with non-U.S. investment accounts.
Short Answer:
Yes, most foreign mutual funds are classified as PFICs.
Explanation:
Foreign mutual funds generally meet PFIC income and asset tests.
Example:
A U.S. individual investing in a non-U.S. mutual fund will typically have a PFIC.
Common Mistake:
Assuming foreign mutual funds are treated like U.S. mutual funds.
When to Get Help:
We would be happy to review your holdings.
If this situation applies to you, we would be happy to review your structure and confirm your filing requirements.