Quick Answer: What Is a PFIC Annual Information Statement?
A PFIC Annual Information Statement is issued by the PFIC or an authorized representative for a tax year covered by a shareholder’s QEF election. It reports the shareholder’s pro-rata ordinary earnings and net capital gain—or supplies enough information to calculate those amounts—and includes required representations under Treas. Reg. §1.1295-1(g).
PFIC Annual Information Statement Requirements
A compliant statement identifies the PFIC tax year and provides either the shareholder’s pro-rata ordinary earnings and net capital gain or sufficient data to calculate them. The regulation also requires representations concerning access to the PFIC’s books and the calculation of those amounts. The statement must be signed by the PFIC or an authorized representative.
| Required element | Why it matters |
|---|---|
| PFIC tax-year start and end dates | Matches the fund year to the shareholder’s Form 8621 reporting year. |
| Ordinary earnings | Supports the ordinary-income inclusion reported in Form 8621 Part III. |
| Net capital gain | Supports the shareholder’s QEF net-capital-gain inclusion. |
| Per-share or shareholder allocation data | Allows calculation when the statement does not give the final shareholder amount. |
| Required representations and signature | Distinguishes a regulatory PFIC statement from an ordinary fund report. |
PFIC Annual Information Statement Sample
The following is a simplified content outline, not a substitute for fund-specific legal and tax documentation:
PFIC: Example Foreign Fund Ltd.
Tax year: January 1–December 31, 2026
Ordinary earnings: USD amount per share
Net capital gain: USD amount per share
Shareholder calculation information: daily or period allocation method
Representation: the fund will permit inspection and copying of relevant books and records as required
Signature: authorized PFIC representative and date
Can I Make a QEF Election Without a PFIC Statement?
Generally, the shareholder needs a compliant PFIC Annual Information Statement, Annual Intermediary Statement, combined statement, or qualifying alternative documentation to support the QEF information reported on Form 8621. A fund fact sheet, audited financial statements, distribution notice, or local tax report usually does not contain all required QEF data and representations.
If no usable AIS exists, the practical question often becomes whether the PFIC stock qualifies for a §1296 mark-to-market election or remains under the default §1291 rules.
Annual Intermediary and Combined Statements
An intermediary may issue an Annual Intermediary Statement when a shareholder owns the PFIC through the intermediary. A PFIC or intermediary may also provide a combined statement for lower-tier PFICs when the regulatory requirements are satisfied. These documents require careful entity and ownership matching; a consolidated broker summary is not automatically a compliant intermediary statement.
Using the PFIC AIS on Form 8621
For the election year, the shareholder generally checks Election A in Part II, completes the applicable Part III lines using the AIS information, and attaches Form 8621 to a timely filed return. In later QEF years, the annual inclusions and basis adjustments continue. Retain each Form 8621, attachment and annual statement because failure to produce the documentation on IRS request can jeopardize the election.
For the complete tax and basis calculation, continue to the PFIC QEF Election and Form 8621 calculation guide. To compare eligibility and timing against MTM and §1291, use the PFIC election options guide. Once the statement is validated, the PFIC QEF calculator can map AIS amounts into a Part III worksheet.
PFIC Annual Information Statement FAQ
What is a PFIC Annual Information Statement?
Can I make a QEF election without a PFIC Annual Information Statement?
Is a PFIC AIS the same as a fund annual report?
Official Sources
Content reflects Form 8621 (Rev. 12/2025), applicable Treasury Regulations, IRS guidance, and other authorities cited on this page.