PFIC Rules: A Hidden Danger for American Investors Abroad
Many American investors living abroad diversify their portfolios by buying local mutual funds or investment trusts. On the surface, it seems practical — invest where you live, in your local currency, and through familiar financial institutions. But for U.S. citizens, that approach can come with unexpected tax headaches. Most foreign mutual funds fall under the IRS’s Passive Foreign Investment Company (PFIC) rules — among the most complex and puniti
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