Portage Biotech Inc. (PRTG)

[bbhuey]

Hi

I was reading the 10 K and the tax treatment for U.S. holders in which the company did not go for a ruling on whether this company qualifies as a passive Foreign investment company like a foreign mutual fund if more than 50 percent income is passive investment income.If so then you would then be taxed on your pro grata share of earnings and profits at ordinary income rates and also pay tax on interest.If it is a PFIC you would have to make one of three elections and file form 8621 otherwise they can hit you on back taxes for past years.
I talked to Etrade and they treated it as a taxable stock spin off and as a nonqualified dividend.
I am still trying to figure out what to do and looking at form that is a taxpayer nightmare