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
Note. An extension of time to file an income tax return will
unless otherwise noted.
not provide an extension of time to file Form 3520-A. Form
7004 must be filed in order to request an extension of time
to file Form 3520-A.
Who Must Sign
If the return is filed by:
For the latest information about developments related to
An individual or fiduciary, it must be signed and dated
Form 3520-A and its instructions, such as legislation
by that individual or fiduciary;
enacted after they were published, go to
A partnership, it must be signed and dated by a general
partner or limited liability company member; or
Purpose of Form
A corporation, it must be signed and dated by the
president, vice president, treasurer, assistant treasurer,
Form 3520-A is the annual information return of a foreign
chief accounting officer, or any other corporate officer
trust with at least one U.S. owner. The form provides
(such as a tax officer) authorized to sign.
information about the foreign trust, its U.S. beneficiaries,
and any U.S. person who is treated as an owner of any
The paid preparer must complete the required preparer
portion of the foreign trust under the grantor trust rules
(sections 671 through 679).
Sign the return in the space provided for the preparer's
Who Must File
Give a copy of the return to the filer.
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
reporting requirements under section 6048(b). Each U.S.
The U.S. owner is subject to an initial penalty equal to the
person treated as an owner of any portion of a foreign
greater of $10,000 or 5% of the gross value of the portion
trust under the grantor trust rules (sections 671 through
of the trust's assets treated as owned by the U.S. person
679) is responsible for ensuring that the foreign trust files
at the close of that tax year, if the foreign trust (a) fails to
Form 3520-A and furnishes the required annual
file a timely Form 3520-A, or (b) does not furnish all of the
statements to its U.S. owners and U.S. beneficiaries.
information required by section 6048(b) or includes
incorrect information. See section 6677(a) through (c).
Exception. Custodians of Canadian registered
retirement savings plans (RRSPs) and Canadian
The U.S. owner is subject to an additional separate
registered retirement income funds (RRIFs) are not
penalty equal to the greater of $10,000 or 5% of the gross
required to file Form 3520-A with respect to a U.S. citizen
value of the portion of the trust's assets treated as owned
or resident alien who holds an interest in an RRSP or
by the U.S. person at the close of that tax year, if the U.S.
RRIF. In addition, custodians of any other Canadian
owner (a) fails to file a timely Form 3520 (Part II), or (b)
retirement plan within the meaning of section 3 of Rev.
fails to furnish all of the information required by section
Proc. 2014-55 are not required to file Form 3520-A for a
6048(b) or includes incorrect information. See section
U.S. citizen or resident alien owner or beneficiary. See
6677(a) through (c).
Rev. Proc. 2014-55, 2014-44 I.R.B. 753, available at
Additional penalties will be imposed if the
noncompliance continues for more than 90 days after the
When and Where To File
IRS mails a notice of failure to comply with the required
reporting. For more information, see section 6677.
File a complete Form 3520-A (including the statements on
pages 3 and 4) with the Internal Revenue Service Center,
Criminal penalties may be imposed under sections
P.O. Box 409101, Ogden, UT 84409, by the 15th day of
7203, 7206, and 7207 for failure to file on time and for
the 3rd month after the end of the trust's tax year. Give
filing a false or fraudulent return.
copies of the Foreign Grantor Trust Owner Statement
(page 3 of Form 3520-A) and the Foreign Grantor Trust
Penalties may also be imposed under section 6662(j)
Beneficiary Statement (page 4 of Form 3520-A) to the
for undisclosed foreign financial asset understatements.
U.S. owners and U.S. beneficiaries by the 15th day of the
Reasonable cause. No penalties will be imposed if the
3rd month after the end of the trust's tax year.
taxpayer can demonstrate that the failure to comply was
An extension of time to file Form 3520-A (including the
due to reasonable cause and not willful neglect.
statements on pages 3 and 4) may be granted by filing
Form 7004. For details, see Form 7004, Application for
Note. The fact that a foreign country would impose
Automatic Extension of Time To File Certain Business
penalties for disclosing the required information is not
Income Tax, Information, and Other Returns.
reasonable cause. Similarly, reluctance on the part of a
Aug 30, 2016
Cat. No. 25096U