The IRS released Revenue Procedure 2020-17, which will be published in the Internal Revenue Bulletin on March 16th, 2020 and could have implications for your 2019 tax return. What’s the big deal about this new Rev. Proc? It provides relief to US participants of foreign pensions and other tax favored foreign accounts. This article will focus on the relief on foreign pension reporting, which can be one of the biggest headaches for
PFICs
Do you Have a Foreign Pension? It May be Invested in PFICs
In our blog post IRS Tax Relief for U.S. Taxpayers with Certain Foreign Pensions I wrote: Before anyone goes rushing into investing in a Pillar 3 or other individual foreign pensions, though, one final comment about PFICs. Swiss ETFs or mutual funds, and other foreign investment funds that are the typical investment vehicles used in foreign individual retirement accounts, are generally classified as PFICs for US tax purposes. PFICs are