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2015

Department of the Treasury

Internal Revenue Service

Instructions for

Form 3520-A

Annual Information Return of Foreign Trust

With a U.S. Owner

Section references are to the Internal Revenue Code

Proc. 2014-55, 2014-44 I.R.B. 753, available at

unless otherwise noted.

When and Where To File

General Instructions

File a complete Form 3520-A (including the statements on

Future Developments

pages 3 and 4) with the Internal Revenue Service Center,

P.O. Box 409101, Ogden, UT 84409, by the 15th day of

For the latest information about developments related to

the 3rd month after the end of the trust's tax year. Give

Form 3520-A and its instructions, such as legislation

copies of the Foreign Grantor Trust Owner Statement

enacted after they were published, go to

(page 3 of Form 3520-A) and the Foreign Grantor Trust

Beneficiary Statement (page 4 of Form 3520-A) to the

What's New

U.S. owners and U.S. beneficiaries by the 15th day of the

3rd month after the end of the trust's tax year.

Excepted Specified Foreign Financial Assets Repor-

An extension of time to file Form 3520-A (including the

ted. Form 3520-A adds a checkbox to be completed with

statements on pages 3 and 4) may be granted by filing

respect to a U.S. person treated as the owner of any

Form 7004. For details, see Form 7004, Application for

portion of a foreign trust who satisfies his or her Form

Automatic Extension of Time To File Certain Business

8938, Statement of Specified Foreign Financial Assets,

Income Tax, Information, and Other Returns.

reporting obligations by ensuring Form 3520-A is filed and

by completing Part IV, Excepted Specified Foreign

Note. An extension of time to file an income tax return will

Financial Assets, of Form 8938. For further information,

not provide an extension of time to file Form 3520-A. Form

see the Instructions for Form 8938, generally, and in

7004 must be filed in order to request an extension of time

particular, Duplicative reporting and Part IV. Excepted

to file Form 3520-A.

Specified Foreign Financial Assets.

Who Must Sign

Purpose of Form

If the return is filed by:

Form 3520-A is the annual information return of a foreign

An individual or fiduciary, it must be signed and dated

trust with at least one U.S. owner. The form provides

by that individual or fiduciary.

information about the foreign trust, its U.S. beneficiaries,

A partnership, it must be signed and dated by a general

and any U.S. person who is treated as an owner of any

partner or limited liability company member.

portion of the foreign trust under the grantor trust rules (as

A corporation, it must be signed and dated by the

described in sections 671 through 679).

president, vice president, treasurer, assistant treasurer,

Who Must File

chief accounting officer, or any other corporate officer

(such as a tax officer) authorized to sign.

A foreign trust with a U.S. owner must file Form 3520-A in

order for the U.S. owner to satisfy its annual information

The paid preparer must complete the required preparer

reporting requirements under section 6048(b). Each U.S.

information and:

person treated as an owner of any portion of a foreign

Sign the return in the space provided for the preparer's

trust under the grantor trust rules (as described in sections

signature.

671 through 679) is responsible for ensuring that the

Give a copy of the return to the filer.

foreign trust files Form 3520-A and furnishes the required

Penalties

annual statements to its U.S. owners and U.S.

beneficiaries.

The U.S. owner is subject to an initial penalty equal to the

greater of $10,000 or 5% of the gross value of the portion

Exception. Custodians of Canadian registered

of the trust's assets treated as owned by the U.S. person

retirement savings plans (RRSPs) and Canadian

at the close of that tax year, if the foreign trust: (a) fails to

registered retirement income funds (RRIFs) are not

file a timely Form 3520-A or (b) does not furnish all of the

required to file Form 3520-A with respect to a U.S. citizen

information required by section 6048(b) or includes

or resident alien who holds an interest in a RRSP or RRIF.

incorrect information. See section 6677(a) through (c).

In addition, custodians of any other Canadian retirement

Additional penalties will be imposed if the noncompliance

plan within the meaning of section 3 of Rev. Proc.

continues for more than 90 days after the IRS mails a

2014-55 are not required to file Form 3520-A for a U.S.

notice of failure to comply with the required reporting. For

citizen or resident alien owner or beneficiary. See Rev.

more information, see section 6677.

Nov 20, 2015

Cat. No. 25096U

Instructions For Form 3520-A - Annual Information Return Of Foreign Trust With A U.s. Owner - 2015

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