Has anyone seen a PFIC AIS that meets the U.S. requirements?

Tax and legal
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For U.S. investors in Portugal who invested through funds:

Has your CPA confirmed whether your QEF election is supported by an Annual Information Statement that was prepared in a manner that meets the requirements under Reg. 1.1295-1(g)?

I’ve reviewed multiple AIS samples and so far have not seen one that meets those requirements. If anyone has a redacted AIS that does, I would appreciate seeing it for comparison. Thanks!

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What is it that’s missing from the ones you’ve seen?

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Here you go. This is the same format I’ve been sent for the past 5 years and all CPA verified.

file deleted

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Thanks for this. I’m also looking for a fund that provides good PFIC statements. Would you recommend your current fund and/or manager (assuming they still have funds available that are not fully subscribed)?

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I’m invested in a VC fund with these guys. Mine is already mid-cycle but I believe they start new ones periodically. You can contact them through the website for details:

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Thank you very much for sharing this PFIC AIS, Jack. While it is more generous with guidance than most other PFIC AIS that I have seen, I notice that the start date and end date for the tax year are missing. Treas. Reg. 1.1295-1(g)(1)(i) mandates inclusion of: “(i) The first and last days of the [taxable year].” The fix is trivial, so it may be worth asking the fund or its administrator to include the dates going forward. (Disclaimer: not tax advice)

Beyond that, I see your later post sharing that the fund is a PE fund. Portugal does not generally distinguish between Private Equity and Venture Capital in ways that are common in the U.S., which can mean the portfolio includes either mature operating companies (typical of PE) or start-ups (typical of VC). Early stage companies can sometimes be PFICs themselves depending on income and assets. That is not a comment on Indico specifically, just a general note for U.S. investors when foreign funds hold multiple corporate entities.

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The errors and omissions I’m finding in my research are varied. What I have not found yet are compliant examples of a Combined Statement per Treas. Reg. § 1.1295-1(g)(4). For context, I’m not analyzing any specific fund’s structure here, just scanning formats against the requirements. Here’s that section of the regs:

(4) Combined statements—(i) PFIC Annual Information Statement. A PFIC that owns directly or indirectly any stock of one or more PFICs with respect to which a shareholder may make the section 1295 election may prepare a PFIC Annual Information Statement that combines with its own information and representations the information and representations of all the PFICs. The PFIC may use any format for a combined PFIC Annual Information Statement provided the required information and representations are separately stated and identified with the respective corporations.

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I think you’re worrying about it too much. The year end date is actually stated, and the start date is unambiguous in the context of my overall return. The PFIC statements were reviewed by my accountant at a major US firm for the past four years and we haven’t had any issues. On your second point, Portugal does distinguish VC and PE in law through different regulated vehicle types. In any event, portfolio stage overlap isn’t relevant to PFIC status. US tax law determines that at the fund level based on income and assets.

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Understood. I appreciate your posts and generosity offering an inside look. Thank you. And please forgive me for being imprecise. What I should have said is that colloquially, the terms “PE” and “VC” tend to be used interchangeably in Portugal.

For the benefit of other folks who encounter this thread, I will mention that PFIC status is determined separately for every non-US corporation owned directly or indirectly by a U.S. person. That means a foreign fund can be a PFIC, and the portfolio assets held inside that fund can also independently be PFICs.

This is why I’m looking for examples of PFIC AIS, and most especially for examples of Combined PFIC AIS.

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Simple, clear instructions on filling out 8261 for your PFIC as a QEF

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Hi, Thanks for the video, which I imagine may be helpful to some folks. It’s a bit tangential to the thread, however, and I want to be sure I’m not overlooking a point you may be trying to make by posting this video on a thread seeking examples of fully compliant PFIC AISs issued by Portuguese Golden Visa fund managers. The video does not show examples of a PFIC AISs. What was the purpose of posting it?

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Not to negate anything that was said earlier or make a point …
just relevant to the eventual purpose of filing PFIC QEF for those of us (first timers) who have been struggling with this. Thanks for your posting!

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Thanks for that clarity, @lv2excel. I want to caution everyone that any given fund manager issued PFIC AIS may not be correct. These forms merit review before filing.

I wrote this up in more detail here: U.S. PT GV Fund investors from 2022, you might want to claim a tax refund immediately. All US investors: check your FBAR obligation

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