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Line 2. If the trust did not appoint a U.S. agent, attach the

Line 5. Attach a statement that provides the following

information concerning the transfer:

following documents to Form 3520-A:

•

1. Name, U.S. taxpayer identification number (if any), and

A summary of the terms of the trust that includes a summary

country of organization or residence of the person to whom the

of any oral agreements or understandings you have with the

property was transferred.

trustee, whether or not legally enforceable.

2. A general description of the transfer, and any broader

•

A copy of all trust documents (and any revisions), including

transaction of which it forms a part, including a chronology of

the trust instrument, any memoranda of wishes prepared by the

the transfers involved and an identification of the other parties

trustees summarizing the settlor’s wishes, any letter of wishes

to the transaction to the extent known.

prepared by the settlor summarizing his or her wishes, and any

3. A description of the property transferred, including the

similar documents.

estimated FMV and the adjusted basis of the property.

4. A description of the consideration received by the trust,

including its estimated FMV, and for stock or securities, the

Lines 3a through 3g. If a foreign trust with a U.S. owner does

class or type, amount, and characteristics of the interest

not have a U.S. agent, the IRS may determine the amounts

received. If no consideration was received by the trust, indicate

required to be taken into account with respect to the foreign

whether the trust or a U.S. owner exercises any powers over

trust by the U.S. owner. See section 6048(b)(2). In order to

the entity to which the property was transferred (including a

avoid this, a U.S. owner of a foreign trust should ensure that the

description of such powers), and identify the name, U.S.

foreign trust appoints a U.S. person to act as the foreign trust’s

taxpayer identification number (if any), and country of

limited agent for purposes of applying sections 7602, 7603, and

organization or residence of all beneficial owners of such entity.

7604 with respect to a request by the IRS to examine records or

5. To the extent known, a description of any subsequent

produce testimony, or a summons by the IRS for such records

transfer of the property, including the name, U.S. taxpayer

or testimony. Any U.S. citizen, resident alien, or domestic

identification number (if any), and country of organization or

corporation (including a U.S. grantor or U.S. beneficiary of a

residence of the person to whom the property was

foreign trust) may act as the U.S. agent of the trust.

subsequently transferred.

The statement must also contain a description of the trust

In order to authorize a U.S. person to act as an agent under

ownership structure setting forth the name, U.S. taxpayer

section 6048(b), the trust and the agent must enter into a

identification number (if any), and country of organization of all

binding agreement substantially in the format that follows.

entities in which the trust has an ownership interest, including

Attach a copy of the authorization to Form 3520-A.

an ownership chart showing the trust’s position in the chain of

ownership and the percentages of ownership.

Note: The term “person” includes an individual or an entity,

AUTHORIZATION OF AGENT

whether U.S. or foreign. See page 2 for the definition of U.S.

person. A foreign person is an individual or entity that is not a

[ Name of foreign trust ] hereby expressly authorizes [ name of

U.S. person.

U.S. agent ] to act as its agent solely for purposes of sections

7602, 7603, and 7604 of the Internal Revenue Code with respect to

Part II—Foreign Trust Income Statement

any request to examine records or produce testimony related to the

proper treatment of amounts required to be taken into account

Include all income from U.S. and non-U.S. sources. This

under the rules of section 6048(b)(1)(A) or to any summons for such

financial statement must reasonably reflect the trust’s income

records or testimony. I certify that I have the authority to execute

under U.S. income tax principles.

this authorization of agent to act on behalf of [ name of foreign

trust ].

Income

Line 1. Interest. Report all taxable interest income that was

received during the tax year. Examples of taxable interest

Signature of trustee

(title)

(date)

include, but are not limited to, interest from:

•

(or other authorized person)

Accounts (including certificates of deposit and money market

accounts) with banks, credit unions, and thrift institutions.

•

Notes, loans, and mortgages.

•

Your Name (type or print)

U.S. Treasury bills, notes, and bonds.

•

U.S. savings bonds.

•

Original issue discount.

Identification Number (if any)

•

Income received as a regular interest holder of a real estate

mortgage investment conduit (REMIC).

For taxable bonds acquired after 1987, amortizable bond

Address

premium is treated as an offset to the interest income instead of

[ Name of agent ] accepts this appointment to act as agent

as a separate interest deduction. See Pub. 550, Investment

for [ name of foreign trust ] for the above purpose. I certify that I

Income and Expenses.

have the authority to execute this authorization of agent to act on

Line 2. Dividends. Report all ordinary dividends received

behalf of [ name of foreign trust ] and agree to accept service of

during the tax year.

process for the above purposes.

Note: Report capital gain distributions on line 5.

Line 4. Income (loss) from partnerships, fiduciaries, etc.

Enter the trust’s share of income or (losses) from partnerships,

Signature of agent

(title)

(date)

S corporations, estates, other trusts, and REMICS.

If the trust received a Schedule K-1 from a partnership, S

corporation, or other flow-through entity, use the corresponding

Your Name (type or print)

lines on Form 3520-A to report the interest, dividends, capital

gains, etc., from the flow-through entity.

Identification Number (if any)

Line 5. Capital gains (losses). For capital gains (losses)

attributable to a U.S. owner, use Schedule D (corporate or

Address

individual, whichever applies).

Line 6. Ordinary gains (losses). Enter the ordinary gain or

(loss) from the sale or exchange of property other than capital

-3-

Instructions For Form 3520-A - Annual Information Return Of Foreign Trust With A U.s. Owner - 2002 Page 3

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