Form 3520-A

Form 3520-A

A form one files with the IRS providing information on a foreign trust owned by a U.S. person. Each U.S. owner of a single foreign trust must file a separate Form 3520-A. This is an information return, but some of the income or assets reported may be taxable.
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The owner is also subject to an additional 5% penalty if the foreign trust itself fails to file a timely Form 3520-A ["Annual Information Return of Foreign Trust With a U.
taxpayer with one would be required to file a Form 3520-A, Annual Information Return ofForeign Trust With a U.
From 1990 through 2006, the number of Form 3520 returns filed reporting foreign "grantor" and "nongrantor" trust transactions and certain foreign gifts rose from 133 to 7,956 (almost 5,900 percent), while the number of Form 3520-A foreign "grantor" trust returns filed rose from 291 to 3,819 (over 1,200 percent) (Figure A).
source, it must file Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts; Form 3520-A, Annual Information Return of Foreign Trust With U.
agent is being appointed, the instructions to Form 3520 require that the agent be formally appointed via an Authorization of Agent (a form of which is included in the instructions to Form 3520-A, discussed below) and for a copy of the Authorization to be attached to the Form 3520 when it is filed.
Income Tax Return for Estates and Trusts; 3 1/2 months on Form 5500, Annual Return/Report of Employee Benefit Plan; and six months on Form 990, Return of Organization Exempt From Income Tax, Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code, Form 5227, Split-Interest Trust Information Return, Form 6069, Return of Excise Tax on Excess Contributions to Black Lung Benefit Trust Under Section 4953 and Computation of Section 192 Deduction, Form 8870, Information Return for Transfers Associated With Certain Personal Benefit Contracts, and Form 3520-A, Annual Information Return of a Foreign Trust With a U.
From 1990 through 2002, the number of Form 3520 returns filed reporting foreign trust transactions and certain foreign gifts rose by over 3,400 percent, while the number of Form 3520-A foreign "grantor" trust returns filed rose by over 700 percent (Figure A) [1].
5 million to the trust over a period of three years, but did not file Form 3520 or cause the trust to file Form 3520-A.
Some taxpayers will be relieved of filing responsibilities if they already file Forms 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts; Form 3520-A, Annual Information Return of Foreign Trust with a U.
For 1998, some 1,572 Form 3520-A information returns were filed with the Internal Revenue Service, over five times the number of returns filed for 1990.
person who creates, transfers, or receives a distribution from a foreign trust is required to file Form 3520, as well as Form 3520-A, on or before the income tax return's due date, including extensions (IRC section 6048[a], [c]; IRS Notice 97-34; Instructions to Form 3520).
MCNAMARA, SOLE PRACTITIONER, LAKE FOREST, CA, AND MEMBER, AICPA TAX DIVISION'S TRUST, ESTATE & GIFT TAX TECHNICAL RESOURCE PANEL, FOREIGN TRUST FORM 3520 TASK FORCE, FORM 3520-A TASK FORCE, AND TRUST ACCOUNTING INCOME TECHNICAL ISSUES TASK FORCE