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For Form 3520 purposes, a “reference ID number” with

immediately prior to death, or the estate of the U.S.

respect to the foreign trust is a number established with

decedent included assets of a foreign trust.

respect to the foreign trust by or on behalf of the U.S.

Part I—Transfers by U.S. Persons to a

person that is engaged in a transaction with such foreign

Foreign Trust During the Current Tax

trust with respect to which Form 3520 reporting is

required. There is no need to apply to the IRS to request a

Year

reference ID number or for permission to use such

number. This number is used to uniquely identify the

Complete Part I for information on a reportable event

foreign trust in order to keep track of the trust from tax

(defined earlier).

year to tax year only on Form 3520 (and on any other form

Note. Although the basic reporting requirements for Form

that is attached to or associated with Form 3520, including

3520 are contained in section 6048 (and are clarified by

the Form 3520-A in the case of a U.S. owner of the foreign

Notice 97-34), the reporting requirements have been

trust) and should not be used with respect to the foreign

clarified by the regulations under sections 679 and 684.

trust on other IRS forms. The reference ID number must

Accordingly, the regulations under sections 679 and 684

meet the requirements set forth below.

should be referred to for additional clarification for

Note. A reference ID number should only be provided

transfers that are required to be reported in Part I of Form

with respect to the foreign trust if you are completing Part

3520.

I, II, or III of the form. The reference ID number is not

Line 5a. Enter the name of the trust creator. If you are the

necessary if you are completing Part IV of the form.

trust creator, enter "Same as line 1a" on line 5a. If you are

Requirements. The reference ID number must be

not the trust creator, enter the name of the person who

alphanumeric (defined below) and no special characters

created or originally settled the foreign trust.

are permitted. The length of a given reference ID number

Lines 5b and 5c. Enter the address and identification

is limited to 50 characters.

number, if any, of the trust creator. See Identifying

For these purposes, the term “alphanumeric” means

Information, earlier, for specific information regarding the

the entry can be alphabetical, numeric, or any

entering of addresses and identification numbers on Form

combination of the two.

3520. If you are the trust creator, enter "Same as lines 1c,

1e, 1f, 1g, and 1h" on line 5b, and enter "Same as line 1b"

The same reference ID number must be used

on line 5c.

consistently from tax year to tax year with respect to a

given foreign trust. If for any reason a reference ID

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

number is not being used (for example, the foreign trust is

code from the list at

terminated and no longer exists), the reference ID number

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

used for that foreign trust cannot be used again for

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

another foreign trust for purposes of Form 3520 reporting.

are different for various transfers, complete a separate

There are some situations that warrant correlation of a

line for each transfer on duplicate copies of the relevant

new reference ID number with a previous reference ID

pages of the form.

number when assigning a new reference ID number to a

foreign trust.

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

requirements that would apply to a direct transfer to that

For example, in the case of a trust that has received

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

assets from another trust, a Form 3520 filer must use a

partnership, you must comply with the reporting

reference ID number for the receiving trust which

requirements for transfers to foreign partnerships. See

correlates the previous reference ID number for the

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

distributing trust with the new reference ID number

Certain Foreign Partnerships.

assigned to the receiving foreign trust.

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

You must correlate the reference ID numbers as

Regulations section 25.2511-2), you may have to file

follows: New reference ID number, Old reference ID

Form 709, United States Gift (and Generation-Skipping

number. If there is more than one old reference ID

Transfer) Tax Return. If the transfer was a bequest, you

number, you must enter a space between each such

may have to file Form 706.

number. As indicated above, the length of a given

reference ID number is limited to 50 characters and each

Line 9. See U.S. Beneficiary, earlier.

number must be alphanumeric and no special characters

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

are permitted.

the foreign trust under the rules of sections 671 through

Note. This correlation requirement applies only to the first

679, answer “Yes” to this question and complete Part II.

year the new reference ID number is used.

Schedule A—Obligations of a Related Trust

Lines 4a through 4f. If you are the executor of the estate

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

of a U.S. citizen or resident, you must provide information

obligation of another person related to the trust) that you

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

receive in exchange for the transferred property equals

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

zero, unless the obligation meets the requirements of a

following applies: the U.S. decedent made a transfer to a

qualified obligation. See Obligation, Qualified Obligation,

foreign trust by reason of death, the U.S. decedent was

and Person related to a foreign trust, earlier.

treated as the owner of a portion of a foreign trust

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Instructions For Form 3520 - Annual Return To Report Transactions With Foreign Trusts - 2016 Page 7

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