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Table of Combined Interest Rate Imposed

2010 weighted UNI . . . . . . . . . . . . . . . . . . . . . . . .

$1,260

on the Total Accumulation Distribution

UNI at beginning of 2010 . . . . . . . . . . . . . . . . . . . . .

+ 350

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

Trust earnings in 2010 . . . . . . . . . . . . . . . . . . . . . .

+ 100

entered on line 50. Read across to find the combined interest rate

Trust distributions in 2010 . . . . . . . . . . . . . . . . . . . .

- 200

to enter on line 51. Use this table only if you are a 2010 calendar

year taxpayer and are using June 30, 2010, as the applicable date.

Weighted trust accumulation distributions in 2010

($100 X 3.6) . . . . . . . . . . . . . . . . . . . . . . . . . . .

- 360

2011 weighted UNI . . . . . . . . . . . . . . . . . . . . . . . .

$1,150

Applicable number

Combined

of years of trust

interest rate

(from line 50)

(enter on line 51)

Line 47. Calculate the trust’s applicable number of years

1 . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0408

by dividing line 46 by line 45. Using the examples in the

1.5 . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0643

instructions for lines 45 and 46, the trust’s applicable

2 . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0941

number of years would be 3.6 in 2010 (1,260/350) and 4.6 in

2.5 . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1301

2011 (1,150/250).

3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1766

3.5 . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2242

Note. Include as many decimal places as there are digits

4 . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2745

in the UNI on line 45 (e.g., using the example in the

4.5 . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3195

5 . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3635

instructions for line 45, include three decimal places).

5.5 . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4012

6 . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4333

Schedule C—Calculation of Interest Charge

6.5 . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4657

7 . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4993

Complete Schedule C if you entered an amount on line 37

7.5 . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5370

or line 41a.

8 . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5842

8.5 . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6320

Line 49. Include the amount from line 48 of this form on

9 . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6906

Form 4970, line 1. Then compute the tax on the total

9.5 . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7634

accumulation distribution using lines 1 through 28 of Form

10 . . . . . . . . . . . . . . . . . . . . . . . . . . 0.8450

4970. Enter on line 49 the tax from line 28 of Form 4970,

10.5 . . . . . . . . . . . . . . . . . . . . . . . . . 0.9246

Tax on Accumulation Distribution of Trusts.

11 . . . . . . . . . . . . . . . . . . . . . . . . . . 1.0038

11.5 . . . . . . . . . . . . . . . . . . . . . . . . . 1.0798

Note. Use Form 4970 as a worksheet and attach it to Form

12 . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1653

3520.

12.5 . . . . . . . . . . . . . . . . . . . . . . . . . 1.2585

13 . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3633

Line 51. Interest accumulates on the tax (line 49) for the

13.5 . . . . . . . . . . . . . . . . . . . . . . . . . 1.4712

14 . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5856

period beginning on the date that is the applicable number

14.5 . . . . . . . . . . . . . . . . . . . . . . . . . 1.6972

of years (as rounded on line 50) prior to the applicable date

15 . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7781

and ending on the applicable date. For purposes of making

15.5 . . . . . . . . . . . . . . . . . . . . . . . . . 1.8590

this interest calculation, the applicable date is the date that

16 . . . . . . . . . . . . . . . . . . . . . . . . . . 1.9399

is mid-year through the tax year for which reporting is made

16.5 . . . . . . . . . . . . . . . . . . . . . . . . . 2.0208

(e.g., in the case of a 2010 calendar year taxpayer, the

17 . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1017

applicable date would be June 30, 2010). Alternatively, if

17.5 . . . . . . . . . . . . . . . . . . . . . . . . . 2.1827

you received only a single distribution during the tax year

18 . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2636

that is treated as an accumulation distribution, you may use

18.5 . . . . . . . . . . . . . . . . . . . . . . . . . 2.3445

the date of that distribution as the applicable date.

19 . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4254

19.5 . . . . . . . . . . . . . . . . . . . . . . . . . 2.5063

For portions of the interest accumulation period that are

20 . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5872

prior to 1996 (and after 1976), interest accumulates at a

20.5 . . . . . . . . . . . . . . . . . . . . . . . . . 2.6681

simple rate of 6% annually, without compounding. For

21 . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7491

portions of the interest accumulation period that are after

21.5 . . . . . . . . . . . . . . . . . . . . . . . . . 2.8300

1995, interest is compounded daily at the rate imposed on

22 . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9109

22.5 . . . . . . . . . . . . . . . . . . . . . . . . . 2.9918

underpayments of tax under section 6621(a)(2). This

23 . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0727

compounded interest for periods after 1995 is imposed not

23.5 . . . . . . . . . . . . . . . . . . . . . . . . . 3.1536

only on the tax, but also on the total simple interest

24 . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2346

attributable to pre-1996 periods.

24.5 . . . . . . . . . . . . . . . . . . . . . . . . . 3.3155

25 . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3964

If you are a 2010 calendar year taxpayer and you use

25.5 . . . . . . . . . . . . . . . . . . . . . . . . . 3.4773

June 30, 2010, as the applicable date for calculating

26 . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5582

interest, use the table below to determine the combined

26.5 . . . . . . . . . . . . . . . . . . . . . . . . . 3.6391

interest rate and enter it on line 51. If you are not a 2010

27 . . . . . . . . . . . . . . . . . . . . . . . . . . 3.7200

calendar year taxpayer or you choose to use the actual date

27.5 . . . . . . . . . . . . . . . . . . . . . . . . . 3.8010

of the distribution as the applicable date, calculate the

28 . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8819

combined interest rate using the above principles and enter

28.5 . . . . . . . . . . . . . . . . . . . . . . . . . 3.9628

it on line 51.

-10-

Instructions For Form 3520 - Annual Return To Report Transactions With Foreign Trusts And Receipt Of Certain Foreign Gifts - 2010 Page 10

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