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that year’s return would be a final return with respect to that

Accordingly, the regulations under sections 679 and 684

foreign trust.

should be referred to for additional clarification for transfers

that are required to be reported in Part I of Form 3520.

Amended return. If this Form 3520 is filed to amend a

Form 3520 that you previously filed, check the “Amended

Line 5a. Enter the name of the trust creator. If you are the

return” box.

trust creator, enter ‘‘Same as line 1a’’ on line 5a. If you are

not the trust creator, enter the name of the person who

Identifying Information

created or originally settled the foreign trust.

Service Center. Generally, enter the name of the Service

Lines 5b and 5c. Enter the address and identification

Center where you file your income tax return in the entry

number, if any, of the trust creator. See Identifying

space provided above line 1a on page 1 of the form.

Information above for specific information regarding the

However, if you are an executor filing a Form 3520 with

entering of addresses and identification numbers on Form

respect to a U.S. decedent, provide both the name of the

3520. If you are the trust creator, enter ‘‘Same as lines 1c,

Service Center where the decedent’s final income tax return

1e, 1f, 1g and 1h’’ on line 5b, and enter ‘‘Same as line 1b’’

will be filed, and the name of the Service Center where

on line 5c.

Form 706 or Form 8939 will be filed, if applicable. Please

Lines 6a and 6b. Enter the applicable two-letter code from

enter the information as follows. First enter the name of the

the list at:

Service Center where the decedent’s final income tax return

Lines 7, 8, and 10. If you are reporting multiple transfers to

will be filed. Then, if applicable, enter the name of the

a single foreign trust and the answers to lines 7, 8, or 10 are

Service Center where Form 706 or Form 8939 is filed,

different for various transfers, complete a separate line for

followed by “(estate tax return)” or “(allocation of basis),”

each transfer on duplicate copies of the relevant pages of

respectively. If your income tax return is filed electronically,

the form.

enter “e-filed.”

Note. The executor of an estate of a decedent dying in

Line 7a. If “Yes,” you must comply with the reporting

2010 may elect not to have the estate tax rules apply, and

requirements that would apply to a direct transfer to that

instead make the special election under section 301(c) of

other person. For example, if that other person is a foreign

the 2010 Tax Relief Act. See Special election under section

partnership, you must comply with the reporting

301(c) of the 2010 Tax Relief Act on page 2 for additional

requirements for transfers to foreign partnerships. See Form

information.

8865, Return of U.S. Persons With Respect to Certain

Foreign Partnerships.

Identification numbers. Use social security numbers or

individual taxpayer identification numbers to identify

Line 8. If the transfer was a completed gift (see

individuals. Use employer identification numbers to identify

Regulations section 25.2511-2), you may have to file Form

estates, trusts, partnerships, and corporations.

709, United States Gift (and Generation-Skipping Transfer)

Tax Return.

Do not enter a preparer tax identification number

If the transfer was a bequest, you may have to file Form

(PTIN) in any entry space on Form 3520 other than

706. For a decedent dying in 2010, the executor of the

the entry space for “PTIN” at the bottom of page 1 of

CAUTION

estate may make the special election under section 301(c)

the form.

of the 2010 Tax Relief Act. See Special election under

Address. Include the room, suite, or other unit number

section 301(c) of the 2010 Tax Relief Act on page 2 for

after the street address. If the post office does not deliver

additional information.

mail to the street address and the U.S. person has a P.O.

box, show the box number instead.

Line 9. See definition of U.S. beneficiary on page 5.

Foreign address. Do not abbreviate the country name.

Line 10. If you are treated as the owner of any portion of

Line 1. This line identifies the person that is filing Form

the foreign trust under the rules of sections 671 through 679,

answer “Yes” to this question and complete Part II.

3520. If you and your spouse are both making transfers to

the same trust and you file joint returns, you may file only

Schedule A—Obligations of a Related Trust

one Form 3520. Put the names and taxpayer identification

numbers in the same order as they appear on your Form

Line 11a. The FMV of an obligation of the trust (or an

1040.

obligation of another person related to the trust) that you

Line 4. If you are the executor of the estate of a U.S.

receive in exchange for the transferred property equals zero,

citizen or resident, you must provide information about the

unless the obligation meets the requirements of a qualified

decedent on lines 4a through 4e. You must also check the

obligation. See page 4 for the definitions of obligation,

applicable box on line 4f to indicate which of the following

qualified obligation, and person related to a foreign trust.

applies: the U.S. decedent made a transfer to a foreign trust

Lines 12 and 26. If you answered “Yes” to the question on

by reason of death, the U.S. decedent was treated as the

line 11b (line 25, column (e)) with respect to any obligation,

owner of a portion of a foreign trust immediately prior to

you generally must answer “Yes” to the question on line 12

death, or the estate of the U.S. decedent included assets of

(line 26). By so doing, you agree to extend the period of

a foreign trust.

assessment of any income or transfer tax attributable to the

transfer and any consequential income tax changes for each

Part I—Transfers by U.S. Persons to a

year that the obligation is outstanding to a date 3 years after

Foreign Trust During the Current Tax

the maturity date of the obligation. This form will be deemed

to be agreed upon and executed by the IRS for purposes of

Year

Regulations section 301.6501(c)-1(d).

Complete Part I for information on a reportable event

If you answer “No” to the question on line 12 (line 26),

(defined on page 4).

you generally may not treat an obligation as a qualified

Note. Although the basic reporting requirements for Form

obligation on line 11b (line 25, column (e)). The one

3520 are contained in section 6048 (and are clarified by

exception to this is if the maturity date of the obligation does

Notice 97-34), the reporting requirements have been

not extend beyond the end of your tax year for which you

clarified by the regulations under sections 679 and 684.

are reporting and such obligation is paid within that tax year.

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Instructions For Form 3520 - Annual Return To Report Transactions With Foreign Trusts And Receipt Of Certain Foreign Gifts - 2010 Page 6

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