Federal Tax Day - Current, I.1, IRS Issues Additional Guidance on Retroactive Qualified Electing Fund Ruling Requests (Rev. Proc. 2026-10), (Jan 8, 2026)

The IRS has provided additional guidance on the process for requesting private letter rulings to make retroactive qualified electing fund (QEF) elections under Code Sec. 1295(b) and Reg. § 1.1295-3(f). The guidance is intended to improve the process for passive foreign investment company (PFIC) shareholders seeking retroactive QEF elections by explaining ruling eligibility requirements, addressing issues with user fees, and detailing the post-submission process, including the need to demonstrate reasonable reliance and no prejudice to U.S. interests under Reg. § 1.1295-3(f)(3).

The guidance provided in Rev. Proc. 2026-10 is effective for all ruling requests received on or after January 20, 2026.

Shareholders and their representatives may contact the Office of Associate Chief Counsel (International) for an informal consultation in connection with determining whether to file a retroactive QEF election ruling request.

Rev. Proc. 2026-10