Instructions for IRS Form 3520-A "Annual Information Return of Foreign Trust With a U.S. Owner"

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Download Instructions for IRS Form 3520-A "Annual Information Return of Foreign Trust With a U.S. Owner"

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2018
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
Foreign Grantor Trust Beneficiary Statement (page 5
unless otherwise noted.
of Form 3520-A) to the U.S. owners and U.S. beneficiaries
by the 15th day of the 3rd month after the end of the trust's
General Instructions
tax year.
An extension of time to file Form 3520-A (including the
Future Developments
statements on pages 3 through 5) may be granted by filing
Form 7004, Application for Automatic Extension of Time
For the latest information about developments related to
To File Certain Business Income Tax, Information, and
Form 3520-A and its instructions, such as legislation
Other Returns. For details, see Form 7004.
enacted after they were published, go to
IRS.gov/
Form3520A.
Note. An extension of time to file an income tax return will
Purpose of Form
not provide an extension of time to file Form 3520-A. Form
7004 must be filed in order to request an extension of time
Form 3520-A is the annual information return of a foreign
to file Form 3520-A.
trust with at least one U.S. owner. The form provides
information about the foreign trust, its U.S. beneficiaries,
Who Must Sign
and any U.S. person who is treated as an owner of any
If the return is filed by:
portion of the foreign trust under the grantor trust rules
An individual or fiduciary, it must be signed and dated
(sections 671 through 679).
by that individual or fiduciary;
Who Must File
A partnership, it must be signed and dated by a general
partner or limited liability company member; or
A foreign trust with a U.S. owner must file Form 3520-A in
A corporation, it must be signed and dated by the
order for the U.S. owner to satisfy its annual information
president, vice president, treasurer, assistant treasurer,
reporting requirements under section 6048(b). Each U.S.
chief accounting officer, or any other corporate officer
person treated as an owner of any portion of a foreign
(such as a tax officer) authorized to sign.
trust under the grantor trust rules (sections 671 through
679) is responsible for ensuring that the foreign trust files
The paid preparer must complete the required preparer
Form 3520-A and furnishes the required annual
information and:
statements to its U.S. owners and U.S. beneficiaries. If a
Sign the return in the space provided for the preparer's
foreign trust fails to file Form 3520-A, the U.S. owner must
signature, and
complete and attach a substitute Form 3520-A for the
Give a copy of the return to the filer.
foreign trust to the U.S. owner’s Form 3520, Annual
Penalties
Return To Report Transactions With Foreign Trusts and
Receipt of Certain Foreign Gifts. See Part II, line 22, of the
The U.S. owner is subject to an initial penalty equal to the
Instructions for Form 3520. Otherwise, the U.S. owner
greater of $10,000 or 5% of the gross value of the portion
may be liable for a penalty. See Penalties, later.
of the trust's assets treated as owned by the U.S. person
at the close of that tax year, if the foreign trust (a) fails to
Exception. Custodians of Canadian registered
file a timely Form 3520-A, or (b) does not furnish all of the
retirement savings plans (RRSPs) and Canadian
information required by section 6048(b) or includes
registered retirement income funds (RRIFs) are not
incorrect information. See section 6677(a) through (c).
required to file Form 3520-A with respect to a U.S. citizen
or resident alien who holds an interest in an RRSP or
The U.S. owner is subject to an additional separate
RRIF. In addition, custodians of any other Canadian
penalty equal to the greater of $10,000 or 5% of the gross
retirement plan within the meaning of section 3 of Rev.
value of the portion of the trust's assets treated as owned
Proc. 2014-55 are not required to file Form 3520-A for a
by the U.S. person at the close of that tax year, if the U.S.
U.S. citizen or resident alien owner or beneficiary. See
owner (a) fails to file a timely Form 3520 (Part II), or (b)
Rev. Proc. 2014-55, 2014-44 I.R.B. 753, available at
fails to furnish all of the information required by section
IRS.gov/irb/2014-44_IRB/ar10.html.
6048(b) or includes incorrect information. See section
6677(a) through (c) and the Instructions for Form 3520.
When and Where To File
Additional penalties will be imposed if the
File a complete Form 3520-A (including the statements on
noncompliance continues for more than 90 days after the
pages 3 through 5) with the Internal Revenue Service
IRS mails a notice of failure to comply with the required
Center, P.O. Box 409101, Ogden, UT 84409, by the 15th
reporting. For more information, see section 6677.
day of the 3rd month after the end of the trust's tax year.
Criminal penalties may be imposed under sections
Give copies of the Foreign Grantor Trust Owner
7203, 7206, and 7207 for failure to file on time and for
Statement (pages 3 and 4 of Form 3520-A) and the
filing a false or fraudulent return.
Nov 30, 2018
Cat. No. 25096U
2018
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
Foreign Grantor Trust Beneficiary Statement (page 5
unless otherwise noted.
of Form 3520-A) to the U.S. owners and U.S. beneficiaries
by the 15th day of the 3rd month after the end of the trust's
General Instructions
tax year.
An extension of time to file Form 3520-A (including the
Future Developments
statements on pages 3 through 5) may be granted by filing
Form 7004, Application for Automatic Extension of Time
For the latest information about developments related to
To File Certain Business Income Tax, Information, and
Form 3520-A and its instructions, such as legislation
Other Returns. For details, see Form 7004.
enacted after they were published, go to
IRS.gov/
Form3520A.
Note. An extension of time to file an income tax return will
Purpose of Form
not provide an extension of time to file Form 3520-A. Form
7004 must be filed in order to request an extension of time
Form 3520-A is the annual information return of a foreign
to file Form 3520-A.
trust with at least one U.S. owner. The form provides
information about the foreign trust, its U.S. beneficiaries,
Who Must Sign
and any U.S. person who is treated as an owner of any
If the return is filed by:
portion of the foreign trust under the grantor trust rules
An individual or fiduciary, it must be signed and dated
(sections 671 through 679).
by that individual or fiduciary;
Who Must File
A partnership, it must be signed and dated by a general
partner or limited liability company member; or
A foreign trust with a U.S. owner must file Form 3520-A in
A corporation, it must be signed and dated by the
order for the U.S. owner to satisfy its annual information
president, vice president, treasurer, assistant treasurer,
reporting requirements under section 6048(b). Each U.S.
chief accounting officer, or any other corporate officer
person treated as an owner of any portion of a foreign
(such as a tax officer) authorized to sign.
trust under the grantor trust rules (sections 671 through
679) is responsible for ensuring that the foreign trust files
The paid preparer must complete the required preparer
Form 3520-A and furnishes the required annual
information and:
statements to its U.S. owners and U.S. beneficiaries. If a
Sign the return in the space provided for the preparer's
foreign trust fails to file Form 3520-A, the U.S. owner must
signature, and
complete and attach a substitute Form 3520-A for the
Give a copy of the return to the filer.
foreign trust to the U.S. owner’s Form 3520, Annual
Penalties
Return To Report Transactions With Foreign Trusts and
Receipt of Certain Foreign Gifts. See Part II, line 22, of the
The U.S. owner is subject to an initial penalty equal to the
Instructions for Form 3520. Otherwise, the U.S. owner
greater of $10,000 or 5% of the gross value of the portion
may be liable for a penalty. See Penalties, later.
of the trust's assets treated as owned by the U.S. person
at the close of that tax year, if the foreign trust (a) fails to
Exception. Custodians of Canadian registered
file a timely Form 3520-A, or (b) does not furnish all of the
retirement savings plans (RRSPs) and Canadian
information required by section 6048(b) or includes
registered retirement income funds (RRIFs) are not
incorrect information. See section 6677(a) through (c).
required to file Form 3520-A with respect to a U.S. citizen
or resident alien who holds an interest in an RRSP or
The U.S. owner is subject to an additional separate
RRIF. In addition, custodians of any other Canadian
penalty equal to the greater of $10,000 or 5% of the gross
retirement plan within the meaning of section 3 of Rev.
value of the portion of the trust's assets treated as owned
Proc. 2014-55 are not required to file Form 3520-A for a
by the U.S. person at the close of that tax year, if the U.S.
U.S. citizen or resident alien owner or beneficiary. See
owner (a) fails to file a timely Form 3520 (Part II), or (b)
Rev. Proc. 2014-55, 2014-44 I.R.B. 753, available at
fails to furnish all of the information required by section
IRS.gov/irb/2014-44_IRB/ar10.html.
6048(b) or includes incorrect information. See section
6677(a) through (c) and the Instructions for Form 3520.
When and Where To File
Additional penalties will be imposed if the
File a complete Form 3520-A (including the statements on
noncompliance continues for more than 90 days after the
pages 3 through 5) with the Internal Revenue Service
IRS mails a notice of failure to comply with the required
Center, P.O. Box 409101, Ogden, UT 84409, by the 15th
reporting. For more information, see section 6677.
day of the 3rd month after the end of the trust's tax year.
Criminal penalties may be imposed under sections
Give copies of the Foreign Grantor Trust Owner
7203, 7206, and 7207 for failure to file on time and for
Statement (pages 3 and 4 of Form 3520-A) and the
filing a false or fraudulent return.
Nov 30, 2018
Cat. No. 25096U
Penalties also may be imposed under section 6662(j)
Note. If a partnership or corporation makes a gratuitous
for undisclosed foreign financial asset understatements.
transfer to a trust, the partners or shareholders generally
are treated as the grantors of the trust, unless the
Reasonable cause. No penalties will be imposed if the
partnership or corporation made the transfer for a
taxpayer can demonstrate that the failure to comply was
business purpose of the partnership or corporation.
due to reasonable cause and not willful neglect.
If a trust makes a gratuitous transfer to another trust,
Note. The fact that a foreign country would impose
the grantor of the transferor trust is treated as the grantor
penalties for disclosing the required information is not
of the transferee trust, except that if a person with a
reasonable cause. Similarly, reluctance on the part of a
general power of appointment over the transferor trust
foreign fiduciary or provisions in the trust instrument that
exercises that power in favor of another trust, such person
prevent the disclosure of required information is not
is treated as the grantor of the transferee trust, even if the
reasonable cause.
grantor of the transferor trust is treated as the owner of the
transferor trust.
Definitions
Grantor Trust
Distribution
A grantor trust is any trust to the extent that the assets of
A distribution for section 6048(c) reporting purposes is
the trust are treated as owned by a person other than the
any gratuitous transfer of money or other property from a
trust. See the grantor trust rules in sections 671 through
trust, whether or not the trust is treated as a grantor trust
679. A part of the trust may be treated as a grantor trust to
under the grantor trust rules (sections 671 through 679),
the extent that only a portion of the trust assets are owned
and without regard to whether the recipient is designated
by a person other than the trust.
as a beneficiary by the terms of the trust. A distribution
Note. Due to changes to section 679(c) made by the
includes the receipt of trust corpus and the receipt of a gift
HIRE Act, effective after March 18, 2010, a loan of cash or
or bequest described in section 663(a).
marketable securities from a foreign trust with a U.S.
A distribution also includes constructive transfers from
transferor, directly or indirectly, to a U.S. person, or the
a trust. For example, if charges you make on a credit card
use of any other trust property directly or indirectly by any
are paid by a foreign trust or guaranteed or secured by the
U.S. person (whether or not a beneficiary under the terms
assets of a foreign trust, the amount charged will be
of the trust) will cause a foreign trust to be treated as
treated as a distribution to you by the foreign trust.
having a U.S. beneficiary, unless the U.S. person repays
Similarly, if you write checks on a foreign trust's bank
the loan at a market rate of interest or pays the FMV of the
account, the amount will be treated as a distribution. See
use of such property within a reasonable period of time.
section V of Notice 97-34, 1997-25 I.R.B. 22. Also, if you
Thus, in the case of a foreign trust with a U.S. transferor
receive a payment from a foreign trust in exchange for
that is treated as having a U.S. beneficiary, the foreign
property transferred to the trust or services rendered to
trust is treated as a grantor trust under the grantor trust
the trust, and the fair market value (FMV) of the payment
rules.
you received exceeds the FMV of the property transferred
or services rendered, the excess will be treated as a
Gross Value
distribution to you. See section V of Notice 97-34,
Gross value is the value of property as determined under
1997-25 I.R.B. 22.
section 2512 and its regulations, without regard to any
Examples
prohibitions or restrictions on a person's interest in the
1. If you sell stock with an FMV of $100 to a foreign
property. See section VII of Notice 97-34. Although formal
trust and receive $150 in exchange, you have received a
appraisals generally are not required, you should keep
distribution of $50.
contemporaneous records of how you arrived at your
2. If you receive $100 from the trust for services
good faith estimate.
performed by you for the trust, and the services have an
Nongrantor Trust
FMV of $20, you have received a distribution of $80.
A nongrantor trust is any trust to the extent that the assets
Foreign Trust and Domestic Trust
of the trust are not treated as owned by a person other
A foreign trust is any trust other than a domestic trust. A
than the trust. Thus, a nongrantor trust is treated as a
taxable entity. A trust may be treated as a nongrantor trust
domestic trust is any trust if:
with respect to only a portion of the trust assets. See
1. A court within the United States is able to exercise
Grantor Trust above.
primary supervision over the administration of the trust,
and
Owner
2. One or more U.S. persons have the authority to
An owner of a foreign trust is the person that is treated as
control all substantial decisions of the trust.
owning any of the assets of a foreign trust under the
grantor trust rules.
Grantor
A grantor includes any person who creates a trust or
Property
directly or indirectly makes a gratuitous transfer of cash or
Property means any property, whether tangible or
other property to a trust. A grantor includes any person
intangible, including cash.
treated as the owner of any part of a foreign trust's assets
under sections 671 through 679, excluding section 678.
-2-
Instructions for Form 3520-A (2018)
U.S. Agent
any person has the discretion of making a distribution
from the trust to, or for the benefit of any person, the trust
A U.S. agent is a U.S. person (defined later) that has a
will be treated as having a beneficiary who is a U.S.
binding contract with a foreign trust that allows the U.S.
person, unless the terms of the trust specifically identify
person to act as the trust's authorized U.S. agent (see the
the class of persons to whom such distributions may be
instructions for Part I, Lines 3a through 3g, later) in
made, and none of those persons are U.S. persons during
applying sections 7602, 7603, and 7604 with respect to:
the tax year.
Any request by the IRS to examine records or produce
Certain agreements and understandings treated as
testimony related to the proper U.S. tax treatment of
terms of the trust. For purposes of the general rule
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
A U.S. grantor, a U.S. beneficiary, or a domestic
corpus of the trust being paid or accumulated to or for the
corporation controlled by the grantor or beneficiary may
benefit of a U.S. person, such agreement or
act as a U.S. agent. However, you may not treat the
understanding will be treated as a term of the trust.
foreign trust as having a U.S. agent unless you enter the
Certain loans or uncompensated use of trust
name, address, and taxpayer identification number of the
property. If a foreign trust is not already treated as
U.S. agent on lines 3a through 3g of Part I of the form. See
having a U.S. beneficiary under the rules described
Identification numbers, later.
above, the trust will be treated as having a U.S.
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.
Period Covered
transferor or any event terminating the trust, and the trust
cannot be amended or revised to allow such a distribution.
File the 2018 return for calendar year 2018 and fiscal
For these purposes, an amount will be treated as
years that begin in 2018 and end in 2019. 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
event and regardless of whether anything is actually
distributed to a U.S. person during that tax year.
Special rule in case of discretion to identify
beneficiaries. For purposes of the general rule above, if
-3-
Instructions for Form 3520-A (2018)
Initial Return, Final Return, Amended
Note. When a reference ID number is established with
respect to a foreign trust on a Form 3520-A, then the U.S.
Return
owner(s) of the foreign trust also should use that same
reference ID number with respect to such foreign trust on
Initial return. If this is the foreign trust's first return,
Form 3520. In general, the reference ID number assigned
check the “Initial return” box.
to a foreign trust on Form 3520-A has relevance only on
Final return. If the foreign trust ceases to exist, check
Form 3520-A and Form 3520 (and on any other form that
the “Final return” box.
is attached to or associated with Form 3520-A) and
should not be used with respect to the foreign trust on
Amended return. If this Form 3520-A is filed to amend a
other IRS forms.
Form 3520-A that you previously filed, check the
“Amended return” box.
Requirements. The reference ID number must be
alphanumeric (defined below) and no special characters
Excepted Specified Foreign Financial
or spaces are permitted. The length of a given reference
Assets Reported
ID number is limited to 50 characters.
For these purposes, the term “alphanumeric” means
Check the box only if a U.S. person treated as the owner
the entry can be alphabetical, numeric, or any
of any portion of the trust under the grantor trust rules also
combination of the two.
files Form 8938, Statement of Specified Foreign Financial
Assets, for the tax year and includes this form in the total
The same reference ID number must be used
number of Forms 3520-A reported on line 2 of Part IV,
consistently from tax year to tax year with respect to the
Excepted Specified Foreign Financial Assets, of Form
foreign trust. If for any reason a reference ID number falls
8938. For more information, see the Instructions for Form
out of use (for example, the foreign trust is terminated and
8938, generally, and in particular, "Duplicative Reporting"
no longer exists), the reference ID number used for that
and the specific instructions for Part IV, Excepted Foreign
foreign trust cannot be used again for another foreign trust
Financial Assets.
for purposes of Form 3520-A reporting.
Part I—General Information
There are some situations that warrant correlation of a
new reference ID number with a previous reference ID
Identification numbers. Use social security numbers or
number when assigning a new reference ID number to a
individual taxpayer identification numbers to identify
foreign trust. See the following examples.
individuals. Use employer identification numbers (EINs) to
In the case of a trust that has received assets from
identify estates, trusts, partnerships, and corporations.
another trust, a Form 3520-A filer must use a reference ID
number for the receiving trust which correlates the
Do not enter a preparer tax identification number
previous reference ID number for the distributed trust with
(PTIN) in any entry space on Form 3520-A other
!
the new reference ID number assigned to the receiving
than the entry space for “PTIN” at the bottom of
CAUTION
foreign trust.
page 1 of the form.
You must correlate the reference ID numbers as
follows: New reference ID number, Old reference ID
Address. Include the room, suite, or other unit number
number. If there is more than one old reference ID
after the street address. If the post office does not deliver
number, you must enter a space between each number.
mail to the street address and the U.S. person has a P.O.
As indicated above, the length of a given reference ID
box, show the box number instead.
number is limited to 50 characters and each number must
Foreign address. Do not abbreviate the country name.
be alphanumeric and no special characters are permitted.
Line 1b(2). A reference ID number is required on
Note. This correlation requirement applies only to the first
line 1b(2) only in cases where no EIN was entered for the
year the new reference ID number is used.
foreign trust on line 1b(1). However, filers are permitted to
enter both an EIN on line 1b(1) and a reference ID number
Line 2. If the trust did not appoint a U.S. agent, attach the
on line 1b(2). If applicable, enter the reference ID number
following documents to Form 3520-A.
(defined below) you have assigned to the foreign trust.
A summary of the terms of the trust that includes a
summary of any oral agreements or understandings you
A “reference ID number” for Form 3520-A purposes is a
have with the trustee, whether or not legally enforceable.
number established with respect to the foreign trust by or
A copy of all trust documents (and any revisions),
on behalf of the U.S. owner of the foreign trust for which
including the trust instrument, any memoranda of wishes
Form 3520-A reporting is required. This number is used to
prepared by the trustees summarizing the settlor's wishes,
uniquely identify the foreign trust treated as owned by a
any letter of wishes prepared by the settlor summarizing
U.S. person in order to keep track of the trust from tax
his or her wishes, and any similar documents.
year to tax year. The reference ID number must meet the
requirements set forth below.
Lines 3a through 3g. If a foreign trust with a U.S. owner
does not have a U.S. agent, the IRS may determine the
Note. Because reference ID numbers are established by
amounts required to be taken into account with respect to
or on behalf of the U.S. owner of the foreign trust filing
the foreign trust by the U.S. owner. See section 6048(b)
Form 3520-A, there is no need to apply to the IRS to
(2). In order to avoid this, a U.S. owner of a foreign trust
request a reference ID number or for permission to use
should ensure that the foreign trust appoints a U.S.
these numbers.
person to act as the foreign trust's limited agent for
-4-
Instructions for Form 3520-A (2018)
purposes of applying sections 7602, 7603, and 7604 with
of the interest received. If no consideration was received
respect to a request by the IRS to examine records or
by the trust, indicate whether the trust or a U.S. owner
produce testimony, or a summons by the IRS for such
exercises any powers over the entity to which the property
records or testimony. Any U.S. citizen, resident alien, or
was transferred (including a description of such powers),
domestic corporation (including a U.S. grantor or U.S.
and identify the name, U.S. taxpayer identification number
beneficiary of a foreign trust) may act as the U.S. agent of
(if any), and country of organization or residence of all
the trust.
beneficial owners of such entity.
In order to authorize a U.S. person to act as an agent
5. To the extent known, a description of any
under section 6048(b), the trust and the agent must enter
subsequent transfer of the property, including the name,
into a binding agreement substantially in the format that
U.S. taxpayer identification number (if any), and country of
follows. Attach a copy of the authorization to Form
organization or residence of the person to whom the
3520-A.
property was subsequently transferred.
The statement also must contain a description of the
AUTHORIZATION OF AGENT
trust ownership structure setting forth the name, U.S.
[ Name of foreign trust ] hereby expressly authorizes [ name of
taxpayer identification number (if any), and country of
U.S. agent ] to act as its agent solely for purposes of sections
7602, 7603, and 7604 of the Internal Revenue Code with respect to
organization of all entities in which the trust has an
any request to examine records or produce testimony related to the
ownership interest, including an ownership chart showing
proper treatment of amounts required to be taken into account
the trust's position in the chain of ownership and the
under the rules of section 6048(b)(1)(A) or to any summons for such
records or testimony. I certify that I have the authority to execute
percentages of ownership.
this authorization of agent to act on behalf of [ name of foreign
trust ].
Note. The term “person” includes an individual or an
entity, whether U.S. or foreign. See the definition of U.S.
person earlier. A foreign person is an individual or entity
Signature of trustee
(title)
(date)
(or other authorized person)
that is not a U.S. person.
Line 6. Enter the number of Foreign Grantor Trust
Owner Statements (pages 3 and 4) included with this
Your Name (type or print)
Form 3520-A.
Identification Number (if any)
Part II—Foreign Trust Income
Statement
Address
Include all income from U.S. and non-U.S. sources. This
[ Name of agent ] accepts this appointment to act as agent
for [ name of foreign trust ] for the above purpose. I certify that I
financial statement must reasonably reflect the trust's
have the authority to execute this authorization of agent to act on
income under U.S. income tax principles.
behalf of [ name of foreign trust ] and agree to accept service of
process for the above purposes.
Income
Line 1. Interest. Report all taxable interest income that
Signature of agent
(title)
(date)
was received during the tax year. Examples of taxable
interest include, but are not limited to, interest from the
following.
Your Name (type or print)
Accounts (including certificates of deposit and money
market accounts) with banks, credit unions, and thrift
Identification Number (if any)
institutions.
Address
Notes, loans, and mortgages.
U.S. Treasury bills, notes, and bonds.
Do not enter a PTIN on the authorization form.
U.S. savings bonds.
!
Original issue discount.
CAUTION
Income received as a regular interest holder of a real
Line 5. Attach a statement that provides the following
estate mortgage investment conduit (REMIC).
information concerning the transfer.
For taxable bonds acquired after 1987, amortizable
1. Name, U.S. taxpayer identification number (if any),
bond premium is treated as an offset to the interest
and country of organization or residence of the person to
income instead of as a separate interest deduction. See
whom the property was transferred.
Pub. 550, Investment Income and Expenses.
2. A general description of the transfer, and any
Line 2. Dividends. Report all ordinary dividends
broader transaction of which it forms a part, including a
received during the tax year.
chronology of the transfers involved and an identification
of the other parties to the transaction to the extent known.
Note. Report capital gain distributions on line 5.
3. A description of the property transferred, including
Line 4. Income (loss) from partnerships, fiduciaries,
the estimated FMV and the adjusted basis of the property.
etc. Enter the trust's share of income or (losses) from
4. A description of the consideration received by the
partnerships, S corporations, estates, other trusts, and
trust, including its estimated FMV, and for stock or
REMICs.
securities, the class or type, amount, and characteristics
-5-
Instructions for Form 3520-A (2018)