# 26 U.S.C. § 1295: Qualified electing fund

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s1295>. Cite pinpoints as 26 U.S.C. § 1295(a)(1).

## § 1295(a) General rule

For purposes of this part, any passive foreign investment company shall be treated as a qualified electing fund with respect to the taxpayer if—

**§ 1295(a)(1)** an election by the taxpayer under subsection (b) applies to such company for the taxable year, and

**§ 1295(a)(2)** such company complies with such requirements as the Secretary may prescribe for purposes of—

**§ 1295(a)(2)(A)** determining the ordinary earnings and net capital gain of such company, and

**§ 1295(a)(2)(B)** otherwise carrying out the purposes of this subpart.

## § 1295(b) Election

**§ 1295(b)(1) In general.** 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.

**§ 1295(b)(2) When made.** 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.

## Regulations

- [Treas. Reg. § 1.1295-0](/26/reg/1.1295-0.md): Table of contents. (interprets § 1295)
- [Treas. Reg. § 1.1295-1](/26/reg/1.1295-1.md): Qualified electing funds. (interprets § 1295)
- [Treas. Reg. § 1.1295-3](/26/reg/1.1295-3.md): Retroactive elections. (interprets § 1295)

## Forms named in the regulations

- [Form 8621](https://www.irs.gov/pub/irs-pdf/f8621.pdf)

## Final rules

- [69 FR 24071](https://www.federalregister.gov/documents/2004/05/03/04-9645/electing-mark-to-market-for-marketable-stock) (2004): Electing Mark to Market for Marketable Stock
- [65 FR 5777](https://www.federalregister.gov/documents/2000/02/07/00-1892/general-rules-for-making-and-maintaining-qualified-electing-fund-elections) (2000): General Rules for Making and Maintaining Qualified Electing Fund Elections

## Proposed regulations (not in force)

- [Prop. Treas. Reg. § 1.1295-2](/26/prop/1.1295-2_96-32247.md): Special Preferred QEF Election. (REG-209040-88, proposed 1996-12-24)
- [Prop. Treas. Reg. § 1.1295-1](/26/prop/1.1295-1_2022-00067.md): Qualified electing funds. (REG-101828-19, proposed 2022-01-25)

## Connections

Cites: none

Cited by: § 1 Tax imposed; § 6241 Definitions and special rules; § 6501 Limitations on assessment and collection

## Amendments

- 1986-10-22: [Pub. L. 99-514](/26/act/99-514.md), 100 Stat. 2571
- 1988-11-10: [Pub. L. 100-647](/26/act/100-647.md), 102 Stat. 3522