Looking for a Form 3520 Templates? Download it for free!

Note. Although the basic reporting requirements for Form

Item A—Initial Return, Final Return,

3520 are contained in section 6048 (and are clarified by

Amended Return

Notice 97-34), the reporting requirements have been

clarified by the regulations under sections 679 and 684.

Initial return. If this is the first return you are filing

Accordingly, the regulations under sections 679 and 684

concerning the foreign trust identified, check the “Initial

should be referred to for additional clarification for transfers

return” box.

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

Final return. If no further returns for transactions with the

Line 5a. If you are not the trust creator, enter the name of

foreign trust are required, check the “Final return” box.

the person that created or originally settled the foreign trust.

Example. If you annually filed Part II, Form 3520,

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

because you were the owner of the trust for U.S. income tax

the list at:

purposes and the trust has terminated within the tax year,

,,id=175595,00.html.

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

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

foreign trust.

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

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

different for various transfers, complete a separate line for

Form 3520 that you previously filed, check the “Amended

each transfer on duplicate copies of the relevant pages of

return” box.

the form.

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

Identifying Information

requirements that would apply to a direct transfer to that

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

Service Center. Generally, enter the name of the Service

partnership, you must comply with the reporting

Center where you file your income tax return. However, if

requirements for transfers to foreign partnerships (see Form

you are an executor filing a Form 3520 with respect to a

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

U.S. decedent, provide both the name of the Service Center

Foreign Partnerships).

where the decedent’s final income tax return will be filed,

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

and the name of the Service Center where the estate tax

Regulations section 25.2511-2) or bequest, you may have to

return will be filed. Please enter the information as follows.

file Form 706, United States Estate (and

First enter the name of the Service Center where the

Generation-Skipping Transfer) Tax Return, or Form 709,

decedent’s final income tax return will be filed. Then enter

United States Gift (and Generation-Skipping Transfer) Tax

the name of the Service Center where the estate tax return

Return.

will be filed, followed by “(estate tax return).”

Line 9. See definition of U.S. beneficiary on page 4.

If your income tax return is filed electronically, enter

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

“e-filed.”

the foreign trust under the grantor trust rules, answer “Yes”

Identification numbers. Use social security numbers or

to this question and complete Part II.

individual taxpayer identification numbers to identify

individuals. Use employer identification numbers to identify

Schedule A—Obligations of a Related Trust

estates, trusts, partnerships, and corporations.

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

Do not enter a preparer tax identification number

obligation of another person related to the trust) that you

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

receive in exchange for the transferred property equals zero,

the entry space for “Preparer’s SSN or PTIN” at the

CAUTION

unless the obligation meets the requirements of a qualified

bottom of page 1 of the form.

obligation. See page 3 for the definitions of obligation and

qualified obligation. See page 4 for the definition of person

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

related to a foreign trust.

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

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

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

box, show the box number instead.

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

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

Foreign address. Do not abbreviate the country name.

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

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

assessment of any income or transfer tax attributable to the

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

transfer and any consequential income tax changes for each

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

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

one Form 3520. Put the names and taxpayer identification

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

numbers in the same order as they appear on your Form

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

1040.

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

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

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

citizen or resident, you must provide information about the

you generally may not treat an obligation as a qualified

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

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

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

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

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

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

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

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

owner of a portion of a foreign trust immediately prior to

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

Schedule B—Gratuitous Transfers

a foreign trust.

Complete the applicable portions of Schedule B with respect

to all reportable events (defined on page 4) that took place

Part I—Transfers by U.S. Persons to a

during the current tax year.

Foreign Trust During the Current Tax

Line 13

•

In your description, indicate whether the property is

Year

tangible or intangible.

•

Complete Part I for information on a reportable event

You may aggregate transfers of cash during the year on a

(defined on page 4).

single line of line 13.

-5-

Instructions For Form 3520 - Annual Return To Report Transactions With Foreign Trusts And Receipt Of Certain Foreign Gifts - 2009 Page 5

Related Articles

Related forms

Related Categories