You don’t want to own a passive foreign investment company (PFIC).

Not only will you potentially owe a lot of tax, but you’ll also have to fill out a complicated IRS form for every PFIC you own—annually.

You might think this doesn’t apply to you, but think again: many foreign investment vehicles and corporations are PFICs.

Don’t panic just yet: we’ll explain what a PFIC is, how you report your ownership of it, and the different ways you can pay tax on it (yes, you have choices!). ... Log in to view full article.