Dealing with Indian mutual funds as a US resident

Hi all, need advice handling taxation related to PFIC.

Situation:

• I’m on H-1B. My wife arrived in the U.S. in 2024.
• We filed Married Filing Jointly (MFJ) using the First-Year Choice (IRC §6013(g)), treating her as a U.S. resident for the full year.
• She had 8 Indian mutual funds.
• She sold 6 funds before Oct 2024, worth about ₹10 lakhs (~$12 k).
• She still holds 2 funds, current value ₹2 lakhs (~$2.4 k).
• Our CPA reported the ₹5 lakh (~$6 k) gain from those sales on our 2024 return as my wife's foreign income to comply with wordwide income taxation rule.
• Reading reddit I realized Indian mutual funds are PFICs, which require Form 8621, and PFIC tax rules are far harsher.

Core Questions:

1. Since it’s Oct 2025, can I still amend (1040-X) and revoke the MFJ / §6013(g) election to treat 2024 as dual-status, so my wife is non-resident till October and the fund sales stay outside U.S. tax? Or am I permanently locked into MFJ for 2024?
2. If I’m stuck with MFJ, what’s the least-bad path?
   • File 1040-X and make a deemed-sale election (Reg. 1.1291-10) to reset the PFIC basis to her U.S. residency date?
   • Then sell the remaining 2 funds in 2025 to end PFIC filings forever? We do plan to return to India in 5 years

Goal: Stay compliant with IRS whatever the penalty. Any guidance from people who’ve dealt with this would really help

Note: In her FBAR filling we had mentioned all the 8 mutual funds. We have already received refund from IRS also.