Instructions For Form 3520-A - Annual Information Return Of Foreign Trust With A U.s. Owner - 2003 Page 3

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AUTHORIZATION OF AGENT
Address. Include the suite, room, or other unit number after
[ Name of foreign trust ] hereby expressly authorizes [ name of
the street address. If the Post Office does not deliver mail to the
U.S. agent ] to act as its agent solely for purposes of sections
street address and the U.S. person has a P.O. box, show the
7602, 7603, and 7604 of the Internal Revenue Code with respect to
box number instead.
any request to examine records or produce testimony related to the
proper treatment of amounts required to be taken into account
Foreign address. Do not abbreviate the country name.
under the rules of section 6048(b)(1)(A) or to any summons for such
records or testimony. I certify that I have the authority to execute
Line 2. If the trust did not appoint a U.S. agent, attach the
this authorization of agent to act on behalf of [ name of foreign
following documents to Form 3520-A:
trust ].
A summary of the terms of the trust that includes a summary
of any oral agreements or understandings you have with the
trustee, whether or not legally enforceable.
Signature of trustee
(title)
(date)
(or other authorized person)
A copy of all trust documents (and any revisions), including
the trust instrument, any memoranda of wishes prepared by the
trustees summarizing the settlor’s wishes, any letter of wishes
prepared by the settlor summarizing his or her wishes, and any
Your Name (type or print)
similar documents.
Identification Number (if any)
Lines 3a through 3g. If a foreign trust with a U.S. owner does
not have a U.S. agent, the IRS may determine the amounts
required to be taken into account with respect to the foreign
Address
trust by the U.S. owner. See section 6048(b)(2). In order to
avoid this, a U.S. owner of a foreign trust should ensure that the
[ Name of agent ] accepts this appointment to act as agent
foreign trust appoints a U.S. person to act as the foreign trust’s
for [ name of foreign trust ] for the above purpose. I certify that I
limited agent for purposes of applying sections 7602, 7603, and
have the authority to execute this authorization of agent to act on
7604 with respect to a request by the IRS to examine records or
behalf of [ name of foreign trust ] and agree to accept service of
produce testimony, or a summons by the IRS for such records
process for the above purposes.
or testimony. Any U.S. citizen, resident alien, or domestic
corporation (including a U.S. grantor or U.S. beneficiary of a
foreign trust) may act as the U.S. agent of the trust.
Signature of agent
(title)
(date)
In order to authorize a U.S. person to act as an agent under
section 6048(b), the trust and the agent must enter into a
Your Name (type or print)
binding agreement substantially in the format that follows on
this page under Authorization of Agent. Attach a copy of the
authorization to Form 3520-A.
Identification Number (if any)
Line 5. Attach a statement that provides the following
Address
information concerning the transfer:
1. Name, U.S. taxpayer identification number (if any), and
country of organization or residence of the person to whom the
property was transferred.
Part II—Foreign Trust Income Statement
2. A general description of the transfer, and any broader
Include all income from U.S. and non-U.S. sources. This
transaction of which it forms a part, including a chronology of
financial statement must reasonably reflect the trust’s income
the transfers involved and an identification of the other parties
under U.S. income tax principles.
to the transaction to the extent known.
Income
3. A description of the property transferred, including the
estimated FMV and the adjusted basis of the property.
Line 1. Interest. Report all taxable interest income that was
received during the tax year. Examples of taxable interest
4. A description of the consideration received by the trust,
include, but are not limited to, interest from:
including its estimated FMV, and for stock or securities, the
Accounts (including certificates of deposit and money market
class or type, amount, and characteristics of the interest
accounts) with banks, credit unions, and thrift institutions.
received. If no consideration was received by the trust, indicate
Notes, loans, and mortgages.
whether the trust or a U.S. owner exercises any powers over
U.S. Treasury bills, notes, and bonds.
the entity to which the property was transferred (including a
U.S. savings bonds.
description of such powers), and identify the name, U.S.
Original issue discount.
taxpayer identification number (if any), and country of
Income received as a regular interest holder of a real estate
organization or residence of all beneficial owners of such entity.
mortgage investment conduit (REMIC).
5. To the extent known, a description of any subsequent
For taxable bonds acquired after 1987, amortizable bond
transfer of the property, including the name, U.S. taxpayer
premium is treated as an offset to the interest income instead of
identification number (if any), and country of organization or
as a separate interest deduction. See Pub. 550, Investment
residence of the person to whom the property was
Income and Expenses.
subsequently transferred.
Line 2. Dividends. Report all ordinary dividends received
during the tax year.
Note: Report capital gain distributions on line 5.
The statement must also contain a description of the trust
ownership structure setting forth the name, U.S. taxpayer
Line 4. Income (loss) from partnerships, fiduciaries, etc.
identification number (if any), and country of organization of all
Enter the trust’s share of income or (losses) from partnerships,
entities in which the trust has an ownership interest, including
S corporations, estates, other trusts, and REMICS.
an ownership chart showing the trust’s position in the chain of
If the trust received a Schedule K-1 from a partnership, S
ownership and the percentages of ownership.
corporation, or other flow-through entity, use the corresponding
lines on Form 3520-A to report the interest, dividends, capital
Note: The term “person” includes an individual or an entity,
gains, etc., from the flow-through entity.
whether U.S. or foreign. See page 2 for the definition of U.S.
Line 5. Capital gains (losses). For capital gains (losses)
person. A foreign person is an individual or entity that is not a
attributable to a U.S. owner, use Schedule D (corporate or
U.S. person.
individual, whichever applies).
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