Tax Year Prior to 2020: How do I manually file form 8621?

[gl100]

One response said to mail the form to Ogden.  Is that correct for filers across the USA?  When should it be mailed?  Before or after efiling?  What about extensions?  Is there any IRS page/rule that says this is OK?

Thanks!

[GeoffreyG]

Form 8621 (Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund) is not included in the standard TurboTax software package.

According to the official IRS instructions, this form is used for the following (5) circumstances:

1. Receives certain direct or indirect distributions from a PFIC,
2. Recognizes gain on a direct or indirect disposition of PFIC stock,
3. Is reporting information with respect to a QEF or section 1296 mark-to-market election,
4. Is making an election reportable in Part II of the form, or
5. Is required to file an annual report pursuant to section 1298(f).

In practice, however, where I have seen it used the most is for taxpayers to report ownership of foreign mutual funds, hedge funds, and similar investments that have overseas headquarters / operations, but that are not registered securities in the United States.

In order to use and file Form 8621 properly, with TurboTax, a taxpayer would want to complete the rest of their tax return in TurboTax, fill out Form 8621 manually, and then "insert" the completed Form 8621 into their tax return documents (using Attachment Sequence Number 69).  Finally, they would then paper-file (not e-file) their complete tax return, including Form 8621.  This tax return filing would be sent to the normal, regular, IRS office where taxpayers in that person's particular state routinely file.

Note:  please see the attached picture file illustration at the bottom of this text for an example of where to look for the "Attachment Sequence" number of any IRS tax form; simply click the picture to open.

Alternatively, Form 8621 can be paper-filed, manually, by mailing it alone to the "Internal Revenue Service Center,  Ogden, UT 84201-0201."  In that case the remainder of the taxpayer's return could be e-filed.

However, if a US taxpayer is otherwise filing an individual tax return (i.e., the Form 1040 series), then it is more proper (per IRS guidance) to include Form 8621 with the rest of that taxpayer's regular return.

Please see Page 1 of the Form 8621 instructions at the following link to confirm:

https://www.irs.gov/pub/irs-pdf/i8621.pdf


Because there is no actual tax due with the filing of Form 8621, however, as a practical matter it should be acceptable to file it by either method (with or without the rest of your return), as it is simply a disclosure and compliance document.

Thank you for asking this question.

[dvdarpan]

Does IRS provide a receipt of the Form 8621 (mailed separately), if so should we provide a return envelope for it.

[SweetieJean]

Just send it with a USPS Tracking Number.

[taxpaul]

I'm filing 8621 for a distribution and need to report excess distributions tax and interest. How can I add to 1040 line 11a for tax and to 1040 schedule 4 line 62 checkbox c when using TurboTax without manually recreating each form after printing?

[tom777]

I have the same problem. Does the override work for these line items on Mac?

[tom777]

this information is not correct. There are tax implications on form 1040 and other income. I want to know how to add the additional tax to line 11a and interest to line 62 of schedule 4. Thanks.

[SusanY1]

You are correct that there can definitely be tax implications related to this form.

Unfortunately, TurboTax doesn't support it at all.  The only way to include it in a tax return prepared in TurboTax would be to override tax calculations, which is something we do not recommend. Overriding tax calculations also voids our Accuracy Guarantee.

Calculations can only be overridden in the forms mode of the CD/Download version of the TurboTax program.  You should carefully follow the instructions for Form 8621 - for example, you may need to write in "1291 Tax" on line 11a per instructions for 16e of 8621 in some instances.  

Years in which you are required to file a tax return, you attach your Form 8621 and file it along with your return to the service center that normally processes your tax return. If you are using TurboTax, you will not be able to e-File your return.

If you are not otherwise required to file a tax return, you send the form to Internal Revenue Service Center, Ogden, UT 84201-0201.  Do not send it to the Odgen office if you are filing it with a return.  

[OZ2]

I was just given the advice on live that even though I have filed electronically my return w/out attaching the 8261,  I can mail just the 8261 form to Ogden (my filed return already included the information from there).

Is that not correct?

[VictorW9]

That is correct. You can file the form 8621 by mail.

[BeanDiesel]

@VictorW9 , so I can file my electronic return normally, and then snail-mail form 8621 by itself to the IRS?

[DMarkM1]

According to the instructions for form 8621, 

"Attach Form 8621 to the shareholder's tax return (or, if applicable, partnership or exempt organization return) and file both by the due date, including extensions, of the return at the Internal Revenue Service Center where the tax return is required to be filed."

"If you are not required to file an income tax return or other return for the tax year, file Form 8621 directly with the Internal Revenue Service Center, Ogden, UT 84201-0201."

If you cannot e-file then you should print and mail all to the correct center for your tax return.  

[donal1]

I and EXPERT SusanY1 above disagree with your sentence, "In that case the remainder of the taxpayer's return could be e-filed." SusanY1 and the instructions for form 8621 (that you cite) both say that you should *not* efile your Form 1020 and separately mail your Form 8621. The two forms should be mailed *together* to the address where you normally mail your 1040.