26 U.S.C. § 1295 — Qualified electing fund
submitted 40 years ago by Pub. L. 99-514 to r/title-26-INTERNAL-REVENUE-CODE · 235 words · no verdicts yet
A passive foreign investment company is treated as a qualified electing fund for a taxpayer when the taxpayer makes the required election and the company meets the Secretary's requirements. The election generally continues for later years unless revoked with the Secretary's consent.
(a) General rule. For this part, a passive foreign investment company is treated as a qualified electing fund* for the taxpayer* if (1) the taxpayer's subsection (b) election applies for the taxable year*, and (2) the company meets requirements prescribed by the Secretary* for determining its ordinary earnings and net capital gain and otherwise carrying out this subpart.
(b) Election. (1) A taxpayer may elect for any taxable year with respect to any passive foreign investment company. Once made, the election applies to all later taxable years for that taxpayer and company unless the taxpayer revokes it with the Secretary's consent. (2) The election may be made on or before the tax-return due date, including extensions. Regulations may allow a later election if the taxpayer reasonably believed the company was not a passive foreign investment company and therefore missed the deadline.
For purposes of this part, any passive foreign investment company shall be treated as a qualified electing fund* with respect to the taxpayer* if—
an election by the taxpayer under subsection (b) applies to such company for the taxable year*, and
such company complies with such requirements as the Secretary* may prescribe for purposes of—
determining the ordinary earnings and net capital gain of such company, and
otherwise carrying out the purposes of this subpart.
A taxpayer may make an election under this subsection with respect to any passive foreign investment company for any taxable year of the taxpayer. Such an election, once made with respect to any company, shall apply to all subsequent taxable years of the taxpayer with respect to such company unless revoked by the taxpayer with the consent of the Secretary.
An election under this subsection may be made for any taxable year at any time on or before the due date (determined with regard to extensions) for filing the return of the tax imposed by this chapter for such taxable year. To the extent provided in regulations, such an election may be made later than as required in the preceding sentence where the taxpayer fails to make a timely election because the taxpayer reasonably believed that the company was not a passive foreign investment company.
Source credit: (Added Pub. L. 99–514, title XII, § 1235(a), Oct. 22, 1986, 100 Stat. 2571; amended Pub. L. 100–647, title I, § 1012(p)(37)(A), title VI, § 6127(a), Nov. 10, 1988, 102 Stat. 3522, 3715.)
- 1986Enacted · Pub. L. 99-514 · 100 Stat. 2571
- 1988Amended · Pub. L. 100-647 · 102 Stat. 3522, 3715
A history note hasn’t been published yet. The record shows enactment by Pub. L. 99-514 on 1986-10-22.
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