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Screen 8621-2 - Passive Foreign Investment Company or Electing Fund, Page 2 (1041)

Distributions / Dispositions of Section 1291 Fund Stock

Total distributions during the current tax year
Do not enter data for the rest of Part IV if the holding period of the applicable stock began in the current tax year and your client did not dispose of the stock during the tax year. If your client disposed of the stock during the tax year, skip Part IV, lines 10b through 10e, and enter data for lines 10f and 11.
Aggregate increase in tax for the holding period
Enter the amount determined by multiplying the part of the excess distribution allocated to each year in the holding period (other than the current tax year and any pre-PFIC years) by the highest rate of tax in effect for that tax year under section 1 or 11 (whichever section applies).
Excess distribution taxes for the holding period
Enter the excess distribution taxes determined by apportioning total creditable foreign taxes (attributable to an excess distribution) between the part of the distribution that is an excess distribution and the part that is not an excess distribution. Carryover of any unused excess distribution taxes is not allowed.
Interest on aggregate increase in tax
Enter the interest charged on each net increase in tax. Begin with the due date of the income tax return for the tax year to which an increase in tax is attributable, and end with the due date of the income tax return for the excess distribution tax year. Due dates are considered without regard to extensions.

Status of Prior Year / Termination of Section 1294 Elections

Tax year of election
Enter the last day of the tax year(s) for any outstanding section 1294 election. Do not include an election made in the current tax year.
Undistributed earnings
Enter the undistributed earnings of the qualified electing fund for which the section 1294 election extended the payment of the tax. If the election was partially terminated in a prior tax year, enter the remaining undistributed earnings.
Deferred tax
Enter the tax for which payment was extended by the section 1294 election. If the election was partially terminated in a prior tax year, enter the balance of the deferred tax.
Deferred tax interest accrued
Enter the accrued interest on the deferred tax. Accrued interest calculates from the due date of the return for the year in which the section 1294 election was made until the date the current year’s return is filed.
Election completely terminated
Enter
X
 if the related election was completely terminated. Leave this field blank if the election was not terminated or was only partially terminated. The deferred tax due is calculates with this return based on the entries on this screen. The deferred tax will be included in other taxes on Form 1041.
Accrued interest due
Enter the accrued interest on the deferred tax. Accrued interest calculates from the due date of the return for the year the section 1294 election was made until the date the termination year’s return is filed. The accrued interest is included with the amount owed on Form 1041 or 1040NR.

This article applies to:

  • Product: UltraTax CS
  • Return type: 1041 Fiduciary
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