Code Section 1298
| Code Section | Effective Date | Name of Act | Name of Provision | 10yr Revenue Estimate ($millions) |
|---|---|---|---|---|
| 1298 | 3/18/2010 | The Hiring Incentives to Restore Employment Act | Reporting of activities with respect to passive foreign investment companies | *See sec. 1471 |
*Note on Revenue Estimate
See sec. 1471, provision: Reporting on certain foreign accounts
Reporting of activities with respect to passive foreign investment companies
Explanation of Provision
The provision requires that, unless otherwise provided by the Secretary, each U.S. person who is a shareholder of a PFIC must file an annual information return containing such information as the Secretary may require. A person that meets the reporting requirements of this provision may, however, also meet the reporting requirements of section 511 of the Act and new section 6038D of the Code requiring disclosure of information with respect to foreign financial assets. It is anticipated that the Secretary will exercise regulatory authority under this provision or new section 6038D to avoid duplicative reporting.
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