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U.S. Transferor

number of Forms 3520 reported on line 1 of Part IV,

Excepted Specified Foreign Financial Assets, of Form

A U.S. transferor is any U.S. person who:

8938. For more information, see the Instructions for Form

1. Creates or settles a foreign trust;

8938, generally, and in particular, Duplicative Reporting

2. Directly or indirectly transfers money or property to

and the specific instructions for Part IV, Excepted

a foreign trust. This includes deemed transfers under

Specified Foreign Financial Assets.

section 679(a)(4) or section 679(a)(5);

Identifying Information

3. Makes a sale to a foreign trust if the sale was at

other than arm's-length terms or was to a related foreign

Identification numbers. Use social security numbers or

trust, or makes (or guarantees) a loan to a related foreign

individual taxpayer identification numbers to identify

trust; or

individuals. Use employer identification numbers (EINs) to

identify estates, trusts, partnerships, and corporations.

4. Is the executor of the estate of a U.S. person and:

a. The decedent made a testamentary transfer (a

Do not enter a preparer tax identification number

transfer by reason of death) to a foreign trust;

(PTIN) in any entry space on Form 3520 other

than the entry space for “PTIN” at the bottom of

b. Immediately prior to death, the decedent was

CAUTION

page 6 of the form.

treated as the owner of any portion of a foreign trust under

the rules of sections 671 through 679; or

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

c. Any portion of a foreign trust's assets were included

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

in the estate of the decedent.

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

box, show the box number instead.

Generally, the person defined as the transferor is the

responsible party (defined earlier) who must ensure that

Foreign address. Do not abbreviate the country name.

required information be provided or pay appropriate

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

penalties.

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

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

Specific Instructions

one Form 3520. Put the names and taxpayer identification

numbers in the same order as they appear on your Form

Period Covered

1040, U.S. Individual Income Tax Return.

File the 2016 return for calendar year 2016 and fiscal

Line 1j. Generally, enter the name of the Service Center

years that begin in 2016 and end in 2017. For a fiscal

where you file your income tax return in the entry space

year, fill in the tax year in the space at the top of the form.

provided on line 1j on page 1 of the form.

Item A—Initial Return, Initial Return

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

on Extension, Final Return, Amended

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

Service Center where the decedent's final income tax

Return

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

where Form 706 will be filed, if applicable. Please enter

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

the information as follows. First enter the name of the

concerning the foreign trust identified, check the “Initial

Service Center where the decedent's final income tax

return” box.

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

the Service Center where Form 706 is filed, followed by

Initial return on extension. If this is the initial return you

are filing concerning the foreign trust identified and you

“(estate tax return).”

have filed an extension with respect to your income tax

Note. If your income tax return is filed electronically, enter

return, check the “Initial return (extension filed)” box.

“e-filed” in lieu of the name of the Service Center.

Final return. If no further returns for transactions with the

Line 1k. If you filed for an extension of time to file your

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

income tax return, check the box on line 1k. Also, enter

Example. If you annually filed Form 3520 and

the tax form number of the original tax return that will be

completed Part II because you were the owner of the trust

filed with the IRS.

for U.S. income tax purposes and the trust has terminated

Example. You file Form 4868, Application for

within the tax year, that year's return would be a final

Automatic Extension of Time To File U.S. Individual

return with respect to that foreign trust.

Income Tax Return, to extend the time to file your

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

individual income tax return, Form 1040. Enter “1040” on

Form 3520 that you previously filed, check the “Amended

the entry line.

return” box.

Line 2b(2). A reference ID number is required on

Item C—Excepted Specified Foreign

line 2b(2) only in cases where the foreign trust has no EIN.

Financial Assets Reported

However, filers are permitted to enter both an EIN on

line 2b(1) and a reference ID number on line 2b(2). If

Check the box in Item C only if the Form 3520 filer also

applicable, enter the reference ID number (defined below)

files Form 8938, Statement of Specified Foreign Financial

you have assigned to the foreign trust.

Assets, for the tax year and includes this form in the total

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Instructions For Form 3520 - Annual Return To Report Transactions With Foreign Trusts - 2016 Page 6

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