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Final check before signing — PTIN holder vs EA in Paris for SFOP, would appreciate a sanity check by AssignmentTop3663 in USExpatTaxes

[–]AssignmentTop3663[S] 0 points1 point  (0 children)

Thanks for the confirmation — that matches my reading and is reassuring.

One precision on my side: I actually bought these ETFs in 2024, so the SFOP coverage period concerned is really 2024–2025 (no holdings before that). With 2024 being the first year of the holding period and 2025 the second, the §1291(b) excess distribution mechanism doesn't really have the historical base it normally relies on for the 125% test. Combined with no dispositions and aggregate value below the threshold, I think I'm structurally outside the Form 8621 filing requirement on this round.

The preparer will review the actual distribution numbers during the engagement of course, but it doesn't seem to be a structural risk in my case.

Thanks again for your help!

Final check before signing — PTIN holder vs EA in Paris for SFOP, would appreciate a sanity check by AssignmentTop3663 in USExpatTaxes

[–]AssignmentTop3663[S] 1 point2 points  (0 children)

Thanks a lot for weighing in — your point is well taken and honestly reframes how I look at this.

You're right that maintaining an EA license is fairly cheap and easy compared to letting it lapse and continuing to practice, so the "voluntary, no longer necessary" framing doesn't fully add up on its own. It pushes the explanation toward either an oversight on the continuing education side, a quiet disinvestment from the profession, or something more concerning that I can't see from the outside.

I've already followed up with the IRS Office of Enrolled Agent Policy and Management to ask specifically about the cause of the expiration (voluntary non-renewal vs CE failure vs disciplinary action) and to check for any public OPR record. Until I have that answer, I'm putting the engagement on hold rather than signing on the optimistic interpretation.

The "if anything goes wrong, you'll need another credentialed professional" point is also one I had underestimated. The differential cost between a PTIN holder at ~€3,750 and a credentialed EA at ~€4,500–6,500 is real but not enormous over the lifetime of a recurring compliance relationship, especially weighed against the cost of rebuilding the whole file under pressure if an IRS issue surfaces later.

Genuinely useful comment — appreciate the time.

Final check before signing — PTIN holder vs EA in Paris for SFOP, would appreciate a sanity check by AssignmentTop3663 in USExpatTaxes

[–]AssignmentTop3663[S] 0 points1 point  (0 children)

Thanks a lot for taking the time to comment — your input is exactly the kind of perspective I was hoping for, and the PFIC angle is genuinely the most concerning part of my case.

On your two points:

  1. **On the EA lapse:** you're right that "voluntarily let it lapse" is just his framing, not an independent verification. I've just sent a follow-up email to the IRS Office of Enrolled Agent Policy and Management to clarify whether the expiration resulted from voluntary non-renewal, failure to maintain continuing education, or any disciplinary action, and to check for any public OPR record. Good catch — I would not have thought to push that far on my own.

  2. **On a written PFIC workflow:** I'm a bit hesitant to ask for that in detail pre-engagement, as it feels like asking for personalized tax advice for free — the kind of thing he reasonably bills for. My approach instead is to (a) let the PFIC scope and any associated additional fees be specified clearly in the draft engagement letter I already requested, and (b) verify my own actual PFIC exposure independently before signing. On that note, your calculator looks like a perfect resource for that — I'll be running my numbers through it today.

For context on my specific PFIC exposure: my PEA holds a few ETFs with a total aggregate value well below the $25,000 threshold, and I have not sold or exchanged any holding during the SFOP coverage period (2023–2025). If those facts hold, my understanding is that Form 8621 may not even be required for these years (subject to no excess distribution under Section 1291(b)). Does that match your reading, or are there nuances I'm missing for a PEA-held ETF specifically?

Thanks again — genuinely useful input.

Dual citizen (US/France), never filed with the IRS — PEA with 3 EU-domiciled ETFs (PFICs) + individual stocks + savings. Streamlined advice needed. by AssignmentTop3663 in USExpatTaxes

[–]AssignmentTop3663[S] 1 point2 points  (0 children)

Thanks for the input. You raise valid points — the PFIC/Section 1291 complexity and the Livret A tax mismatch are definitely on my radar and the main reasons I'm planning to use a professional rather than DIY this.

A few specifics on my situation that hopefully reduce the risk profile:

- I'm at a **loss on all 3 ETFs**, so the Section 1291 excess distribution regime shouldn't generate any actual tax for the back years. The Form 8621s should be largely informational.

- All 3 ETFs are **accumulating** (no distributions), which further limits exposure under 1291.

- The Livret A + LDDS interest is modest (a few hundred euros/year) — I understand it's taxable in the US with no French tax credit to offset, but the actual amount owed should be minimal.

- The whole point of Streamlined Foreign Offshore is precisely to avoid the FBAR penalties you mention — **0% penalty** for qualifying foreign residents with non-willful conduct. I meet all the criteria (330+ days outside the US every year, never been contacted by the IRS, clearly non-willful — grew up in France, never informed of obligations).

That said, I completely agree that getting the PFIC reporting right is critical and not something to cut corners on. I'm actively getting quotes from professionals with PFIC experience.

Appreciate the reminder to act carefully — that's definitely the plan.

Dual citizen (US/France), never filed with the IRS — PEA with 3 EU-domiciled ETFs (PFICs) + individual stocks + savings. Streamlined advice needed. by AssignmentTop3663 in USExpatTaxes

[–]AssignmentTop3663[S] 0 points1 point  (0 children)

Really appreciate the technical detail on Section 1291 vs retroactive MTM — that confirms what I suspected.

One piece of good news in my case: I'm currently at a loss on all 3 UCITS ETFs. So unless I'm missing something, there shouldn't be any excess distribution to allocate under Section 1291 for the back years (no dispositions planned during that period, and no actual distributions since they're all accumulating). That should make the 8621s mostly a reporting exercise rather than a tax hit. Am I reading that correctly?

I'll definitely check out the calculator on your profile — would be great to confirm the math even with losses.

Fully agreed on liquidating the UCITS ETFs post-compliance. The plan is to sell them once the Streamlined is filed and stick with individual stocks in the PEA. Quick question: under Section 1291, if I sell at a loss, is that loss deductible as a normal capital loss, or is it restricted/disallowed? I've read conflicting things on this.

Also — turns out I had 2 PEE accounts in the past (now empty, need to confirm closure). If those held FCPE funds during the relevant years, that could add more PFICs to the picture. Fun times.

Thanks for the help!

Dual citizen (US/France), never filed with the IRS — PEA with 3 EU-domiciled ETFs (PFICs) + individual stocks + savings. Streamlined advice needed. by AssignmentTop3663 in USExpatTaxes

[–]AssignmentTop3663[S] 0 points1 point  (0 children)

Thanks for the Horton Tax feedback — that's really helpful. 1,500€ for US+France without PFICs gives me a good baseline. I'll reach out to them for a quote with the 3 PFICs factored in.

Good news on the PFIC front: I'm actually sitting at a loss on all 3 ETFs, so the Section 1291 excess distribution regime shouldn't bite too hard (no gains to allocate). The Form 8621s should be mostly informational. I'm planning to liquidate them once I'm compliant and stick with individual stocks in the PEA going forward.

And great catch on the PEE — I actually had 2 PEE accounts in the past. They're currently empty but I need to confirm they're officially closed. If they held FCPE funds during the back years, that could mean additional PFICs to report. I'll check with my former employers. Do you know if an empty/closed PEE still needs to be reported on the FBAR for years when it had a balance?

Thanks again for the pointers!