Final and proposed passive foreign investment company (PFIC) regulations (text of regulations)

Final and proposed PFIC regulations

The IRS today posted on its website versions of final regulations (T.D. 9936) and proposed regulations (REG-111950-20) relating to passive foreign investment companies (PFICs).

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These regulations concern the determination of whether a foreign corporation is treated as a PFIC for U.S. tax purposes, and also address the application and scope of certain rules to determine whether a United States person that indirectly holds stock in a PFIC is treated as a shareholder of the PFIC.

Both versions of the final and proposed regulations include this statement:

This document is in the process of being submitted to the Office of the Federal Register (OFR) for publication and will be pending placement on public display at the OFR and publication in the Federal Register. The version released today may vary slightly from the published document if minor editorial changes are made during the OFR review process. The document published in the Federal Register will be the official document.

Today’s release finalizes regulations that were proposed in July 2019 and October 2019.

  • Read a KPMG report about the July 2019 proposed regulations
  • Read a KPMG report about the October 2019 proposed regulations addressing repeal of section 958(b)(4)

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