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Excepted Specified Foreign Financial

Requirements. The reference ID number must be

alphanumeric (defined below) and no special characters

Assets Reported

or spaces are permitted. The length of a given reference

Check the box only if a U.S. person treated as the owner

ID number is limited to 50 characters.

of any portion of the trust under the grantor trust rules also

For these purposes, the term “alphanumeric” means

files Form 8938, Statement of Specified Foreign Financial

the entry can be alphabetical, numeric, or any

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

combination of the two.

number of Forms 3520-A reported on line 2 of Part IV,

The same reference ID number must be used

Excepted Specified Foreign Financial Assets, of Form

consistently from tax year to tax year with respect to the

8938. For more information, see the Instructions for Form

foreign trust. If for any reason a reference ID number falls

8938, generally, and in particular, "Duplicative Reporting"

out of use (for example, the foreign trust is terminated and

and the specific instructions for Part IV, Excepted Foreign

no longer exists), the reference ID number used for that

Financial Assets.

foreign trust cannot be used again for another foreign trust

Part I—General Information

for purposes of Form 3520-A reporting.

There are some situations that warrant correlation of a

Identification numbers. Use social security numbers or

new reference ID number with a previous reference ID

individual taxpayer identification numbers to identify

number when assigning a new reference ID number to a

individuals. Use employer identification numbers (EINs) to

foreign trust. See the following examples.

identify estates, trusts, partnerships, and corporations.

In the case of a trust that has received assets from

Do not enter a preparer tax identification number

another trust, a Form 3520-A filer must use a reference ID

(PTIN) in any entry space on Form 3520-A other

number for the receiving trust which correlates the

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

previous reference ID number for the distributed trust with

CAUTION

page 1 of the form.

the new reference ID number assigned to the receiving

foreign trust.

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

You must correlate the reference ID numbers as

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

follows: New reference ID number, Old reference ID

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

number. If there is more than one old reference ID

box, show the box number instead.

number, you must enter a space between each number.

As indicated above, the length of a given reference ID

Foreign address. Do not abbreviate the country name.

number is limited to 50 characters and each number must

Line 1b(2). A reference ID number is required on

be alphanumeric and no special characters are permitted.

line 1b(2) only in cases where no EIN was entered for the

foreign trust on line 1b(1). However, filers are permitted to

Note. This correlation requirement applies only to the first

enter both an EIN on line 1b(1) and a reference ID number

year the new reference ID number is used.

on line 1b(2). If applicable, enter the reference ID number

Line 2. If the trust did not appoint a U.S. agent, attach the

(defined below) you have assigned to the foreign trust.

following documents to Form 3520-A.

A “reference ID number” for Form 3520-A purposes is a

A summary of the terms of the trust that includes a

number established with respect to the foreign trust by or

summary of any oral agreements or understandings you

on behalf of the U.S. owner of the foreign trust for which

have with the trustee, whether or not legally enforceable.

Form 3520-A reporting is required. This number is used to

A copy of all trust documents (and any revisions),

uniquely identify the foreign trust treated as owned by a

including the trust instrument, any memoranda of wishes

U.S. person in order to keep track of the trust from tax

prepared by the trustees summarizing the settlor's wishes,

year to tax year. The reference ID number must meet the

any letter of wishes prepared by the settlor summarizing

requirements set forth below.

his or her wishes, and any similar documents.

Note. Because reference ID numbers are established by

Lines 3a through 3g. If a foreign trust with a U.S. owner

or on behalf of the U.S. owner of the foreign trust filing

does not have a U.S. agent, the IRS may determine the

Form 3520-A, there is no need to apply to the IRS to

amounts required to be taken into account with respect to

request a reference ID number or for permission to use

the foreign trust by the U.S. owner. See section 6048(b)

these numbers.

(2). In order to avoid this, a U.S. owner of a foreign trust

should ensure that the foreign trust appoints a U.S.

Note. When a reference ID number is established with

person to act as the foreign trust's limited agent for

respect to a foreign trust on a Form 3520-A, then the U.S.

purposes of applying sections 7602, 7603, and 7604 with

owner(s) of the foreign trust should also use that same

respect to a request by the IRS to examine records or

reference ID number with respect to such foreign trust on

produce testimony, or a summons by the IRS for such

Form 3520. In general, the reference ID number assigned

records or testimony. Any U.S. citizen, resident alien, or

to a foreign trust on Form 3520-A has relevance only on

domestic corporation (including a U.S. grantor or U.S.

Form 3520-A and Form 3520 (and on any other form that

beneficiary of a foreign trust) may act as the U.S. agent of

is attached to or associated with Form 3520-A) and

the trust.

should not be used with respect to the foreign trust on

In order to authorize a U.S. person to act as an agent

other IRS forms.

under section 6048(b), the trust and the agent must enter

into a binding agreement substantially in the format that

-4-

Instructions for Form 3520-A (2016)

Instructions For Form 3520-A - Annual Information Return Of Foreign Trust With A U.s. Owner - 2016 Page 4

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