Tax Kryptonite: Surviving PFICs with Mary Beth Lougen

The Essential Tax Podcast with Mishkin Santa, Season 3, Episode 2In this episode of The Essential Tax Podcast, Mishkin Santa speaks with Mary Beth Lougen, EA, USTCP. Mary Beth is the President and Founder of American Expat Tax Services, which is an international tax preparation firm that assists Americans living abroad. She is also the COO of Expat Tax Tools, an international tax software company. She has over 35 years’ experience in the International Tax Industry.Tune in for these key takeaways:A brief history of the PFIC (Passive Foreign Investment Company), including information about what a PFIC is, how the US tax system handles it, and how the laws surrounding them have evolved over time as the international world has become more interconnected.How and when a REIT (Real Estate Investment Trust) would be considered a PFIC under the Internal Revenue Code.Why US PFIC rules exist and how best to navigate them and stay in compliance if you find yourself owning a PFIC.A discussion of what to do if you find yourself out of compliance with PFIC rules, what the IRS penalties are for noncompliance, and how best to minimize these types of penalties over time.An outline of different types of elections, purge scenarios, and IRS Private Letter Rulings that can be used to minimize PFIC tax burden, and when they might be applicable.When a Check-the-Box Election might apply to a PFIC and how it affects all shareholders in a CFC (controlled foreign corporation).Learn more about Mary Beth Lougen:Explore the Form 8621 Calculator on Expat Tax Tools’ website: https://form8621.com/View Mary Beth’s profile on Expat Tax Tools’ website: https://expattaxtools.com/our-team/#to-beth-introConnect with Mary Beth on LinkedIn: https://www.linkedin.com/in/bethlougen/Follow Expat Tax Tools on LinkedIn: https://www.linkedin.com/company/expat-tax-tools/Visit Expat Tax Tools’ YouTube Channel: https://www.youtube.com/@expattaxtools9362Follow Expat Tax Tools on Facebook: https://www.facebook.com/TaxToolsEmail or Call Mary Beth directly: 6136918621, ext. 1Further Resources:Mary Beth’s Article in CPA Practice Advisor - “Form 8621 Non-Filing Risk: Why PFIC Compliance Deserves More Attention”: https://www.cpapracticeadvisor.com/2026/05/19/form-8621-non-filing-risk-why-pfic-compliance-deserves-more-attention/183576/***********************************About The Essential Tax Podcast:In each episode of The Essential Tax Podcast, Mishkin Santa takes on the complex world of tax — all the jargon, acronyms, and stuff that makes your eyes glaze over, and explains it in an impactful way to understand the complex and unknown areas.Watch or listen to more episodes of The Essential Tax Podcast:YouTube: https://www.youtube.com/@TheWolfGroupPCApple: https://podcasts.apple.com/us/podcast/the-essential-tax-podcast/id1754660944Spotify: https://open.spotify.com/show/2beZfOpwfBlBgWHlNelAOfConnect and learn more from your host, Mishkin Santa:Connect with Mishkin on LinkedIn: https://www.linkedin.com/in/msantaFollow The Wolf Group on LinkedIn: https://www.linkedin.com/company/the-wolf-group-pcRead Mishkin’s bio on The Wolf Group’s website: https://thewolfgroup.com/our-people/mishkin-santa