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Table of Combined Interest Rate Imposed

27.5 . . . . . . . . . . . . . . . . . . . 3.6838

on the Total Accumulation Distribution

28 . . . . . . . . . . . . . . . . . . . . . 3.7578

28.5 . . . . . . . . . . . . . . . . . . . 3.8317

Look up the applicable number of years of the foreign trust that

29 . . . . . . . . . . . . . . . . . . . . . 3.9057

you entered on line 50. Read across to find the combined

29.5 . . . . . . . . . . . . . . . . . . . 3.9796

interest rate to enter on line 51. Use this table only if you are a

30 . . . . . . . . . . . . . . . . . . . . . 4.0536

2008 calendar year taxpayer and are using June 30, 2008, as

30.5 . . . . . . . . . . . . . . . . . . . 4.1275

the applicable date.

31 . . . . . . . . . . . . . . . . . . . . . 4.2015

Applicable number

Combined

All Years Greater than 31 . . . 4.2754

of years of trust

interest rate

(Note. Interest charges began in 1977.)

(from line 50)

(enter on line 51)

1 . . . . . . . . . . . . . . . . . . . . . . 0.0753

1.5 . . . . . . . . . . . . . . . . . . . . 0.1189

Line 53. Report this amount as additional tax (ADT) on the

2 . . . . . . . . . . . . . . . . . . . . . . 0.1649

appropriate line of your income tax return (e.g., for Form

2.5 . . . . . . . . . . . . . . . . . . . . 0.2060

1040 filers, include this amount as part of the total for line 61

of your 2008 Form 1040 and enter “ADT” to the left of the

3 . . . . . . . . . . . . . . . . . . . . . . 0.2462

line 61 entry space).

3.5 . . . . . . . . . . . . . . . . . . . . 0.2807

4 . . . . . . . . . . . . . . . . . . . . . . 0.3100

Part IV—U.S. Recipients of Gifts or

4.5 . . . . . . . . . . . . . . . . . . . . 0.3396

5 . . . . . . . . . . . . . . . . . . . . . . 0.3704

Bequests Received During the

5.5 . . . . . . . . . . . . . . . . . . . . 0.4048

Current Tax Year From Foreign

6 . . . . . . . . . . . . . . . . . . . . . . 0.4479

Persons

6.5 . . . . . . . . . . . . . . . . . . . . 0.4916

7 . . . . . . . . . . . . . . . . . . . . . . 0.5452

Note. Penalties may be imposed for failure to report gifts

7.5 . . . . . . . . . . . . . . . . . . . . 0.6117

that should be reported. See Penalties on page 2.

8 . . . . . . . . . . . . . . . . . . . . . . 0.6863

A gift to a U.S. person does not include any amount paid

8.5 . . . . . . . . . . . . . . . . . . . . 0.7591

for qualified tuition or medical payments made on behalf of

9 . . . . . . . . . . . . . . . . . . . . . . 0.8314

the U.S. person.

9.5 . . . . . . . . . . . . . . . . . . . . 0.9009

If a foreign trust makes a distribution to a U.S.

10 . . . . . . . . . . . . . . . . . . . . . 0.9791

beneficiary, the beneficiary must report the amount as a

10.5 . . . . . . . . . . . . . . . . . . . 1.0642

distribution in Part III, rather than as a gift in Part IV.

11 . . . . . . . . . . . . . . . . . . . . . 1.1600

Contributions of property by foreign persons to domestic

11.5 . . . . . . . . . . . . . . . . . . . 1.2586

or foreign trusts that have U.S. beneficiaries are not

12 . . . . . . . . . . . . . . . . . . . . . 1.3631

reportable by those beneficiaries in Part IV unless they are

12.5 . . . . . . . . . . . . . . . . . . . 1.4652

treated as receiving the contribution in the year of the

13 . . . . . . . . . . . . . . . . . . . . . 1.5391

transfer (e.g., the beneficiary is an owner of that portion of

the trust under section 678).

13.5 . . . . . . . . . . . . . . . . . . . 1.6131

14 . . . . . . . . . . . . . . . . . . . . . 1.6870

A domestic trust that is not treated as owned by another

person is required to report the receipt of a contribution to

14.5 . . . . . . . . . . . . . . . . . . . 1.7610

the trust from a foreign person as a gift in Part IV.

15 . . . . . . . . . . . . . . . . . . . . . 1.8349

15.5 . . . . . . . . . . . . . . . . . . . 1.9089

A domestic trust that is treated as owned by a foreign

person is not required to report the receipt of a contribution

16 . . . . . . . . . . . . . . . . . . . . . 1.9828

to the trust from a foreign person. However, a U.S. person

16.5 . . . . . . . . . . . . . . . . . . . 2.0568

should report the receipt of a distribution from such a trust

17 . . . . . . . . . . . . . . . . . . . . . 2.1308

as a gift from a foreign person in Part IV.

17.5 . . . . . . . . . . . . . . . . . . . 2.2047

Line 54. To calculate the threshold amount ($100,000), you

18 . . . . . . . . . . . . . . . . . . . . . 2.2787

must aggregate gifts from different foreign nonresident

18.5 . . . . . . . . . . . . . . . . . . . 2.3526

aliens and foreign estates if you know (or have reason to

19 . . . . . . . . . . . . . . . . . . . . . 2.4266

know) that those persons are related to each other (see

19.5 . . . . . . . . . . . . . . . . . . . 2.5005

definition of related person on page 3) or one is acting as a

20 . . . . . . . . . . . . . . . . . . . . . 2.5745

nominee or intermediary for the other. For example, if you

20.5 . . . . . . . . . . . . . . . . . . . 2.6484

receive a gift of $75,000 from nonresident alien individual A

21 . . . . . . . . . . . . . . . . . . . . . 2.7224

and a gift of $40,000 from nonresident alien individual B,

and you know that A and B are related, you must answer

21.5 . . . . . . . . . . . . . . . . . . . 2.7963

“Yes” and complete columns (a) through (c) for each gift.

22 . . . . . . . . . . . . . . . . . . . . . 2.8703

If you answered “Yes” to the question on line 54 and

22.5 . . . . . . . . . . . . . . . . . . . 2.9443

none of the gifts or bequests received exceeds $5,000, do

23 . . . . . . . . . . . . . . . . . . . . . 3.0182

not complete columns (a) through (c) of line 54. Instead,

23.5 . . . . . . . . . . . . . . . . . . . 3.0922

enter in column (b) of the first line: “No gifts or bequests

24 . . . . . . . . . . . . . . . . . . . . . 3.1661

exceed $5,000.”

24.5 . . . . . . . . . . . . . . . . . . . 3.2401

Note. Include gifts or bequests from a “covered expatriate”

25 . . . . . . . . . . . . . . . . . . . . . 3.3140

(as defined in section 877A(g)(1)) when calculating the

25.5 . . . . . . . . . . . . . . . . . . . 3.3880

$100,000 threshold amount.

26 . . . . . . . . . . . . . . . . . . . . . 3.4619

Line 55. Answer “Yes” if you received aggregate amounts

26.5 . . . . . . . . . . . . . . . . . . . 3.5359

in excess of $13,561 during the current tax year that you

27 . . . . . . . . . . . . . . . . . . . . . 3.6098

treated as gifts from foreign corporations or foreign

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Instructions For Form 3520 - Annual Return To Report Transactions With Foreign Trusts And Receipt Of Certain Foreign Gifts - 2008 Page 9

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