Company: QSEA
Filing Date: 2025-03-12
Form Type: S-1/A
Source: 0001829126-25-001750
Chunk: 237

Company: Quartzsea Acquisition Corp
Filing Date: 2025-03-12
Form: S-1/A
Chunk 237
---
 characterizations
of the rights that the IRS may successfully assert, including that the rights are treated as equity in our company at the time the rights
are issued, that would reach different conclusions regarding the tax treatment of the rights under the PFIC rules. In any case, depending
on which characterization is successfully applied to the rights, different PFIC consequences may result for U.S. Holders of the rights.
It is also possible that a U.S. Holder of rights would not be able to make a QEF or mark-to-market election (discussed below) with respect
to such U.S. Holder’s rights. Due to the uncertainty of the application of the PFIC rules to the rights, all potential investors
are strongly urged to consult with their own tax advisors regarding an investment in the rights offered hereunder as part of the units
offering and the subsequent consequences to holders of such rights in any initial business combination.

The QEF election is made on a shareholder-by-shareholder
basis and, once made, can be revoked only with the consent of the IRS. A U.S. Holder generally makes a QEF election by attaching a completed
IRS Form 8621 (Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund), including the
information provided in a PFIC annual information statement, to a timely filed United States federal income tax return for the tax year
to which the election relates. Retroactive QEF elections generally may be made only by filing a protective statement with such return
and if certain other conditions are met or with the consent of the IRS. U.S. Holders should consult their tax advisors regarding the
availability and tax consequences of a retroactive QEF election under their particular circumstances.

In
order to comply with the requirements of a QEF election, a U.S. Holder must receive a PFIC
annual information statement from us. If we determine we are a PFIC for any taxable year
(of which there can be no assurance), we will endeavor to provide to a U.S. Holder such information
as the IRS may require, including a PFIC annual information statement, in order to enable
the U.S. Holder to make and maintain a QEF election, but there is no assurance that we will
timely provide such required information. There is also no assurance that we will have timely
knowledge of our status as a PFIC in the future or of the required information to be provided.

<div align='center'>150</div>

If a