Casiturri, That's all well and good, but what if you have never filed form 8621 and the stock takes off?
My situation is I own quite a few shares. Have bought and sold along the way for over 12 years, and sadly, I've never sold at a profit, so no harm, no foul. Most of my stock is a good amount under water (purchased in the $2-$4 range), but I just (1-2 weeks ago) purchased another 5k block at US $.40 (hope springs eternal, etc).
Now, with the interest "seemingly" perking up in this novel little company, I'd like to do whatever I can to cover my butt. Sooooo, no sales for profit in 2015. Is it even necessary to file one of these buggers (form 8621 that is) until a tax year comes along that a profit is made? I do my own taxes, no one to blame but myself but I have numerous questions. So, that's where I sit and I'm guessing a whole bunch of other ONCY longs are in the same boat with me.
BC, thanks much for the advice (although after reading through your V2 board notes, I'm not so sure, as it's a very convoluted process and difficult to understand process in this layman's opinion). A few more questions if you don't mind.
1) Since my 2015 tax return has long since been completed, do I need to file both a file extension and an amended tax return? Or just an extension (how can it be an extension if it's already done? Yikes, help?)
2) I've owned Oncy for many years. Did some buying and selling. Nothing came of it from the IRS. Was I lucky? Stupid (don't answer)? Other?
3) Since I've owned for many years, do I need to lots of tax year amendments?
4) I read on a forum that form 8938 may also be required when filing form 8621. It has to do with more harsh penalties/fines for non-compliance. Thoughts?
5) Do losses for the last tax year negate the need to file this form?
I don't know whether to like you or hate you for the insight (smile) you've provided. Still learning a lot unfortunately. And I have to believe that by you answering my questions you're helping a lot of other people beside myself.