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I'm confused about what to do in Part Two of Form 8621:

"Return by a Shareholder of a Passive Foreign Investment Company or Qualified Fund"

I'll just explain the facts Re. one of
the foreign co.'s:

The co. is:
(NAT) Nordic American Tanker Shipping Limited
Bought 100 shares on May 9, 2002' at $14.10 per share
Held 235 Days in 2002'
Received only two dividend distributions = $65
...


This may be a dumb question, but why do you think you have to file Form 8621?

As far as I can tell NAT runs an operating business of purchasing and leasing oil tankers. It does not appear to be a PFIC. I think what may be confusing you is that dividend income from foreign corporations is considered to be Passive Income for purposes of the Foreign Tax Credit calculations. Personally, I've never filed this form and I suspect not many posters on this board have either.

Convince me that you need to file this form and I'll try to help you through it.

Ira
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