FundTax® PFIC Calculations & Reporting Overview
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FundTax® - Passive Foreign Investment Companies (PFICs)

  • Automate PFIC Calculations & Reporting-Save Time & Reduce Error Risk

    The passive foreign investment companies (PFIC) rules were enacted as part of the Tax Reform Act of 1986 to help address perceived abuses in the U.S. taxation of offshore investments as compared to U.S. investments.

    As a result, fund tax managers investing in one or more PFICs face additional regulatory, tax reporting and operational challenges when computing taxable income, distribution requirements or other calculations as required by the Internal Revenue Code (IRC) and IRS regulations. Manual tracking of PFIC calculations is tedious, time-consuming and prone to error-risk.

    Streamline PFIC Calculations

    GainsKeeper FundTax® is a powerful automated tax reporting solution already relied upon by more than 4,500 U.S.mutual and hedge funds. This solution includes a sophisticated PFIC module to streamline this process. Clients provide a list of securities identified as PFICs, and the module fully automates the required calculations and tracking associated with the IRC Code Sec 1296 mark-to-market election for PFICs. By automating this process, you can reduce the risks of inaccurate fund distributions and associated IRS penalties.

    FundTax PFIC Benefits

    • Significantly reduce time spent  on mark-to-market calculations
    • Reduce risk by ensuring correct lots, shares, cost and market values-reconciled to the client accounting system-are used in the calculations
    • Generate extensive audit trail and roll forward of historical and current amounts calculated within the report
    • Seamless, automated data flow from books and records to the PFIC calculator