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amounts distributed, or required to be taken into account

above, if any U.S. person who directly or indirectly

under the grantor trust rules, with respect to a foreign

transfers property to the trust is directly or indirectly

trust; or

involved in any agreement or understanding (whether

Any summons by the IRS for such records or testimony.

written, oral, or otherwise) that may result in the income or

corpus of the trust being paid or accumulated to or for the

A U.S. grantor, a U.S. beneficiary, or a domestic

benefit of a U.S. person, such agreement or

corporation controlled by the grantor or beneficiary may

understanding will be treated as a term of the trust.

act as a U.S. agent. However, you may not treat the

Certain loans or uncompensated use of trust

foreign trust as having a U.S. agent unless you enter the

property. If a foreign trust is not already treated as

name, address, and taxpayer identification number of the

having a U.S. beneficiary under the rules described

U.S. agent on lines 3a through 3g of Part I of the form. See

above, the trust will be treated as having a U.S.

Identification numbers, later.

beneficiary if, after March 18, 2010, either:

If the person identified as the U.S. agent does not

The foreign trust loans cash or marketable securities

produce records or testimony when requested or

directly or indirectly to a U.S. person and the U.S. person

summoned by the IRS, the IRS may redetermine the tax

does not repay the loan at a market rate of interest within

consequences of your transactions with the trust and

a reasonable period of time, or

impose appropriate penalties under section 6677.

A U.S. person uses property that is owned by the

foreign trust and does not pay FMV of the use of such

The agency relationship must be established by the

property within a reasonable period of time.

time the U.S. person files Form 3520-A for the relevant tax

year and must continue as long as the statute of

Presumption that foreign trust has U.S. beneficiary.

limitations remains open for the relevant tax year. If the

For transfers of property after March 18, 2010, if a U.S.

agent’s responsibility as an agent of the trust is terminated

person directly or indirectly transfers property to a foreign

for any reason (for example, agent’s resignation, agent’s

trust (other than a deferred compensation or charitable

liquidation, or agent’s death), see section IV(B) of Notice

trust described in section 6048(a)(3)(B)(ii)), the IRS may

97-34.

treat such trust as having a U.S. beneficiary for purposes

of applying section 679(d) to such transfer if the IRS

U.S. Beneficiary

requests information with respect to the transfer and the

A U.S. beneficiary generally includes any person that

U.S. person fails to demonstrate to the satisfaction of the

could possibly benefit (directly or indirectly) from the trust

IRS that no portion of the income or corpus of the trust

(including an amended trust) at any time, whether or not

may ever be paid to or accumulated for the benefit of a

the person is named in the trust instrument as a

U.S. person.

beneficiary and whether or not the person can receive a

distribution from the trust in the current year. In addition, a

U.S. Person

U.S. beneficiary includes:

A U.S. person is:

A foreign corporation that is a controlled foreign

A citizen or resident alien of the United States (see Pub.

corporation (as defined in section 957(a)),

519, U.S. Tax Guide for Aliens, for guidance on

A foreign partnership if a U.S. person is a partner of the

determining resident alien status),

partnership, and

A domestic partnership,

A foreign estate or trust if the estate or trust has a U.S.

A domestic corporation,

beneficiary.

Any estate (other than a foreign estate, within the

meaning of section 7701(a)(31)(A)), and

Foreign trust treated as having a U.S. beneficiary. In

Any domestic trust (defined earlier).

general, a foreign trust will be treated as having a U.S.

beneficiary unless the terms of the trust instrument

Specific Instructions

specifically prohibit any distribution of income or corpus to

a U.S. person at any time, even after the death of the U.S.

transferor or any event terminating the trust, and the trust

Period Covered

cannot be amended or revised to allow such a distribution.

File the 2016 return for calendar year 2016 and fiscal

For these purposes, an amount will be treated as

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

accumulated for the benefit of a U.S. person even if the

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

U.S. person's interest in the trust is contingent on a future

Initial Return, Final Return, Amended

event and regardless of whether anything is actually

distributed to a U.S. person during that tax year.

Return

Special rule in case of discretion to identify

beneficiaries. For purposes of the general rule above, if

Initial return. If this is the foreign trust's first return,

any person has the discretion of making a distribution

check the “Initial return” box.

from the trust to, or for the benefit of any person, the trust

Final return. If the foreign trust ceases to exist, check

will be treated as having a beneficiary who is a U.S.

the “Final return” box.

person, unless the terms of the trust specifically identify

the class of persons to whom such distributions may be

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

made, and none of those persons are U.S. persons during

Form 3520-A that you previously filed, check the

the tax year.

“Amended return” box.

Certain agreements and understandings treated as

terms of the trust. For purposes of the general rule

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Instructions for Form 3520-A (2016)

Instructions For Form 3520-A - Annual Information Return Of Foreign Trust With A U.s. Owner - 2016 Page 3

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