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

This document contains official instructions for IRS Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 3520-A is available for download through this link.

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2019
Department of the Treasury
Internal Revenue Service
Instructions for Form 3520-A
Annual Information Return of Foreign Trust With a U.S. Owner
When and Where To File
Section references are to the Internal Revenue Code
unless otherwise noted.
File a complete Form 3520-A (including the statements on
General Instructions
pages 3 through 5) with the Internal Revenue Service
Center, P.O. Box 409101, Ogden, UT 84409, by the 15th
day of the 3rd month after the end of the trust's tax year.
Future Developments
However, if you are filing a substitute Form 3520-A with
For the latest information about developments related to
your Form 3520, then your substitute Form 3520-A is due
Form 3520-A and its instructions, such as legislation
by the due date of Form 3520. See the Instructions for
enacted after they were published, go to
IRS.gov/
Form 3520 for the due date of the Form 3520. Give copies
Form3520A.
of the Foreign Grantor Trust Owner Statement (pages
3 and 4 of Form 3520-A) and the Foreign Grantor Trust
Purpose of Form
Beneficiary Statement (page 5 of Form 3520-A) to the
Form 3520-A is the annual information return of a foreign
U.S. owners and U.S. beneficiaries by the 15th day of the
trust with at least one U.S. owner. The form provides
3rd month after the end of the trust's tax year.
information about the foreign trust, its U.S. beneficiaries,
and any U.S. person who is treated as an owner of any
An automatic 6-month extension of time to file Form
3520-A (including the statements on pages 3 through 5)
portion of the foreign trust under the grantor trust rules
(sections 671 through 679).
may be granted by filing Form 7004, Application for
Automatic Extension of Time To File Certain Business
Who Must File
Income Tax, Information, and Other Returns, by the 15th
A foreign trust with a U.S. owner must file Form 3520-A in
day of the 3rd month after the end of the trust’s tax year.
order for the U.S. owner to satisfy its annual information
For details, see Form 7004.
reporting requirements under section 6048(b). Each U.S.
Note. An extension of time to file an income tax return will
person treated as an owner of any portion of a foreign
not provide an extension of time to file Form 3520-A. Form
trust under the grantor trust rules (sections 671 through
7004 must be filed in order to request an extension of time
679) is responsible for ensuring that the foreign trust files
to file Form 3520-A.
Form 3520-A and furnishes the required annual
statements to its U.S. owners and U.S. beneficiaries. If a
Form 3520-A must have all required attachments to be
foreign trust fails to file Form 3520-A, the U.S. owner must
considered complete.
complete and attach a substitute Form 3520-A for the
Who Must Sign
foreign trust to the U.S. owner’s Form 3520, Annual
Return To Report Transactions With Foreign Trusts and
If the return is filed by:
Receipt of Certain Foreign Gifts, by the due date of the
An individual or fiduciary, it must be signed and dated
U.S. owner’s Form 3520 (and not the due date for the
by that individual or fiduciary;
Form 3520-A, which is otherwise due by the 15th day of
A partnership, it must be signed and dated by a general
the 3rd month after the end of the trust’s tax year) in order
partner or limited liability company member; or
to avoid being subject to the additional separate penalty
A corporation, it must be signed and dated by the
for the foreign trust’s failure to file a Form 3520-A. See
president, vice president, treasurer, assistant treasurer,
Part II, line 22, of the Instructions for Form 3520. See
chief accounting officer, or any other corporate officer
Penalties, later.
(such as a tax officer) authorized to sign.
Exception. Custodians of Canadian registered
Note. If the return is a substitute Form 3520-A that is
retirement savings plans (RRSPs) and Canadian
being completed by a U.S. owner and attached to the U.S.
registered retirement income funds (RRIFs) are not
owner’s Form 3520, then the U.S. owner must sign and
required to file Form 3520-A with respect to a U.S. citizen
date the return and provide the U.S. owner’s name and
or resident alien who holds an interest in an RRSP or
identification number on the Title line of the signature box.
RRIF. In addition, custodians of any other Canadian
For more information about the requirements to file a
retirement plan within the meaning of section 3 of Rev.
substitute Form 3520-A, see Part II, line 22, of the
Proc. 2014-55 are not required to file Form 3520-A for a
Instructions for Form 3520.
U.S. citizen or resident alien owner or beneficiary. See
Rev. Proc. 2014-55, 2014-44 I.R.B. 753, available at
The paid preparer must complete the required preparer
IRS.gov/irb/2014-44_IRB/ar10.html.
information and:
Sign the return in the space provided for the preparer's
signature, and
Give a copy of the return to the filer.
Feb 18, 2020
Cat. No. 25096U
2019
Department of the Treasury
Internal Revenue Service
Instructions for Form 3520-A
Annual Information Return of Foreign Trust With a U.S. Owner
When and Where To File
Section references are to the Internal Revenue Code
unless otherwise noted.
File a complete Form 3520-A (including the statements on
General Instructions
pages 3 through 5) with the Internal Revenue Service
Center, P.O. Box 409101, Ogden, UT 84409, by the 15th
day of the 3rd month after the end of the trust's tax year.
Future Developments
However, if you are filing a substitute Form 3520-A with
For the latest information about developments related to
your Form 3520, then your substitute Form 3520-A is due
Form 3520-A and its instructions, such as legislation
by the due date of Form 3520. See the Instructions for
enacted after they were published, go to
IRS.gov/
Form 3520 for the due date of the Form 3520. Give copies
Form3520A.
of the Foreign Grantor Trust Owner Statement (pages
3 and 4 of Form 3520-A) and the Foreign Grantor Trust
Purpose of Form
Beneficiary Statement (page 5 of Form 3520-A) to the
Form 3520-A is the annual information return of a foreign
U.S. owners and U.S. beneficiaries by the 15th day of the
trust with at least one U.S. owner. The form provides
3rd month after the end of the trust's tax year.
information about the foreign trust, its U.S. beneficiaries,
and any U.S. person who is treated as an owner of any
An automatic 6-month extension of time to file Form
3520-A (including the statements on pages 3 through 5)
portion of the foreign trust under the grantor trust rules
(sections 671 through 679).
may be granted by filing Form 7004, Application for
Automatic Extension of Time To File Certain Business
Who Must File
Income Tax, Information, and Other Returns, by the 15th
A foreign trust with a U.S. owner must file Form 3520-A in
day of the 3rd month after the end of the trust’s tax year.
order for the U.S. owner to satisfy its annual information
For details, see Form 7004.
reporting requirements under section 6048(b). Each U.S.
Note. An extension of time to file an income tax return will
person treated as an owner of any portion of a foreign
not provide an extension of time to file Form 3520-A. Form
trust under the grantor trust rules (sections 671 through
7004 must be filed in order to request an extension of time
679) is responsible for ensuring that the foreign trust files
to file Form 3520-A.
Form 3520-A and furnishes the required annual
statements to its U.S. owners and U.S. beneficiaries. If a
Form 3520-A must have all required attachments to be
foreign trust fails to file Form 3520-A, the U.S. owner must
considered complete.
complete and attach a substitute Form 3520-A for the
Who Must Sign
foreign trust to the U.S. owner’s Form 3520, Annual
Return To Report Transactions With Foreign Trusts and
If the return is filed by:
Receipt of Certain Foreign Gifts, by the due date of the
An individual or fiduciary, it must be signed and dated
U.S. owner’s Form 3520 (and not the due date for the
by that individual or fiduciary;
Form 3520-A, which is otherwise due by the 15th day of
A partnership, it must be signed and dated by a general
the 3rd month after the end of the trust’s tax year) in order
partner or limited liability company member; or
to avoid being subject to the additional separate penalty
A corporation, it must be signed and dated by the
for the foreign trust’s failure to file a Form 3520-A. See
president, vice president, treasurer, assistant treasurer,
Part II, line 22, of the Instructions for Form 3520. See
chief accounting officer, or any other corporate officer
Penalties, later.
(such as a tax officer) authorized to sign.
Exception. Custodians of Canadian registered
Note. If the return is a substitute Form 3520-A that is
retirement savings plans (RRSPs) and Canadian
being completed by a U.S. owner and attached to the U.S.
registered retirement income funds (RRIFs) are not
owner’s Form 3520, then the U.S. owner must sign and
required to file Form 3520-A with respect to a U.S. citizen
date the return and provide the U.S. owner’s name and
or resident alien who holds an interest in an RRSP or
identification number on the Title line of the signature box.
RRIF. In addition, custodians of any other Canadian
For more information about the requirements to file a
retirement plan within the meaning of section 3 of Rev.
substitute Form 3520-A, see Part II, line 22, of the
Proc. 2014-55 are not required to file Form 3520-A for a
Instructions for Form 3520.
U.S. citizen or resident alien owner or beneficiary. See
Rev. Proc. 2014-55, 2014-44 I.R.B. 753, available at
The paid preparer must complete the required preparer
IRS.gov/irb/2014-44_IRB/ar10.html.
information and:
Sign the return in the space provided for the preparer's
signature, and
Give a copy of the return to the filer.
Feb 18, 2020
Cat. No. 25096U
Penalties
Definitions
The U.S. owner is subject to an initial penalty equal to the
Distribution
greater of $10,000 or 5% of the gross value of the portion
of the trust's assets treated as owned by the U.S. person
A distribution for section 6048(c) reporting purposes is
at the close of that tax year if the foreign trust (a) fails to
any gratuitous transfer of money or other property from a
trust, whether or not the trust is treated as a grantor trust
file a timely Form 3520-A, or (b) does not furnish all of the
under the grantor trust rules (sections 671 through 679),
information required by section 6048(b) or includes
and without regard to whether the recipient is designated
incorrect information. See section 6677(a) through (c). If a
as a beneficiary by the terms of the trust. A distribution
foreign trust fails to file a Form 3520-A, the U.S. owner
includes the receipt of trust corpus and the receipt of a gift
must complete and attach a substitute Form 3520-A to the
or bequest described in section 663(a).
U.S. owner’s Form 3520 by the due date of the U.S.
owner’s Form 3520 (and not the due date for Form
A distribution also includes constructive transfers from
3520-A) in order to avoid being subject to a penalty for the
a trust. For example, if charges you make on a credit card
foreign trust’s failure to file a Form 3520-A. For example, a
are paid by a foreign trust or guaranteed or secured by the
substitute Form 3520-A that, to the best of the U.S.
assets of a foreign trust, the amount charged will be
owner’s ability, is completed and attached to the U.S.
treated as a distribution to you by the foreign trust.
owner’s Form 3520 by the due date for the Form 3520
Similarly, if you write checks on a foreign trust's bank
(such as April 15 for the U.S. owners who are individuals)
account, the amount will be treated as a distribution. See
is considered timely filed.
section V of Notice 97-34, 1997-25 I.R.B. 22. Also, if you
The U.S. owner is subject to an additional separate
receive a payment from a foreign trust in exchange for
penalty equal to the greater of $10,000 or 5% of the gross
property transferred to the trust or services rendered to
value of the portion of the trust's assets treated as owned
the trust, and the fair market value (FMV) of the payment
by the U.S. person at the close of that tax year if the U.S.
you received exceeds the FMV of the property transferred
owner (a) fails to file a timely Form 3520 (Part II), or (b)
or services rendered, the excess will be treated as a
fails to furnish all of the information required by section
distribution to you. See section V of Notice 97-34,
6048(b) or includes incorrect information. See section
1997-25 I.R.B. 22.
6677(a) through (c) and the Instructions for Form 3520.
Examples:
Additional penalties will be imposed if the
1. If you sell stock with an FMV of $100 to a foreign
noncompliance continues for more than 90 days after the
trust and receive $150 in exchange, you have received a
IRS mails a notice of failure to comply with the required
distribution of $50.
reporting. If the IRS can determine the gross value
2. If you receive $100 from the trust for services
(defined later) of the portion of the trust’s assets treated
performed by you for the trust, and the services have an
as owned by the U.S. person at the close of the tax year,
FMV of $20, you have received a distribution of $80.
then the additional penalties will be reduced as necessary
to assure that the aggregate amount of such penalties
Foreign Trust and Domestic Trust
does not exceed the gross value of the trust. For more
A foreign trust is any trust other than a domestic trust. A
information, see section 6677.
domestic trust is any trust if:
Criminal penalties may be imposed under sections
1. A court within the United States is able to exercise
7203, 7206, and 7207 for failure to file on time and for
primary supervision over the administration of the trust,
filing a false or fraudulent return.
and
Note. If a U.S. owner of a foreign trust is subject to a
2. One or more U.S. persons have the authority to
penalty imposed under section 6662 for an underpayment
control all substantial decisions of the trust.
of tax required to be shown on a return, then such penalty
Grantor
may be increased under section 6662(j) for any portion of
an underpayment which is attributable to any transaction
A grantor includes any person who creates a trust or
involving any asset with respect to which information was
directly or indirectly makes a gratuitous transfer of cash or
required to be provided on Form 3520-A. For more
other property to a trust. A grantor includes any person
information about undisclosed foreign financial asset
treated as the owner of any part of a foreign trust's assets
understatements, see section 6662(j).
under sections 671 through 679, excluding section 678.
Reasonable cause. No penalties will be imposed if the
Note. If a partnership or corporation makes a gratuitous
taxpayer can demonstrate that the failure to comply with
transfer to a trust, the partners or shareholders are
the reporting requirements was due to reasonable cause
generally treated as the grantors of the trust, unless the
and not willful neglect.
partnership or corporation made the transfer for a
business purpose of the partnership or corporation.
Note. The fact that a foreign country would impose
If a trust makes a gratuitous transfer to another trust,
penalties for disclosing the required information is not
the grantor of the transferor trust is treated as the grantor
reasonable cause. Similarly, reluctance on the part of a
of the transferee trust, except that if a person with a
foreign fiduciary or provisions in the trust instrument that
general power of appointment over the transferor trust
prevent the disclosure of required information is not
exercises that power in favor of another trust, such person
reasonable cause. See section 6677(d) for more
is treated as the grantor of the transferee trust, even if the
information.
-2-
Instructions for Form 3520-A (2019)
grantor of the transferor trust is treated as the owner of the
Any summons by the IRS for such records or testimony.
transferor trust.
A U.S. grantor, a U.S. beneficiary, or a domestic
corporation controlled by the grantor or beneficiary may
Grantor Trust
act as a U.S. agent. However, you may not treat the
A grantor trust is any trust to the extent that the assets of
foreign trust as having a U.S. agent unless you enter the
the trust are treated as owned by a person other than the
name, address, and taxpayer identification number of the
trust. See the grantor trust rules in sections 671 through
U.S. agent on lines 3a through 3g of Part I of the form. See
679. A part of the trust may be treated as a grantor trust to
Identification numbers, later.
the extent that only a portion of the trust assets are owned
If the person identified as the U.S. agent does not
by a person other than the trust.
produce records or testimony when requested or
summoned by the IRS, the IRS may redetermine the
Note. Due to changes to section 679(c) made by the
amounts required to be taken into account with respect to
HIRE Act, effective after March 18, 2010, a loan of cash or
the foreign trust by the U.S. owner. See section 6048(b)
marketable securities from a foreign trust with a U.S.
(2).
transferor, directly or indirectly, to a U.S. person, or the
use of any other trust property directly or indirectly by any
The agency relationship must be established by the
U.S. person (whether or not a beneficiary under the terms
time the U.S. person files Form 3520-A for the relevant tax
of the trust) will cause a foreign trust to be treated as
year and must continue as long as the statute of
having a U.S. beneficiary, unless the U.S. person repays
limitations remains open for the relevant tax year. If the
the loan at a market rate of interest or pays the FMV of the
agent’s responsibility as an agent of the trust is terminated
use of such property within a reasonable period of time.
for any reason (for example, agent’s resignation, agent’s
Thus, in the case of a foreign trust with a U.S. transferor
liquidation, or agent’s death), see section IV(B) of Notice
that is treated as having a U.S. beneficiary, the foreign
97-34.
trust is treated as a grantor trust under the grantor trust
rules.
U.S. Beneficiary
A U.S. beneficiary generally includes any person that
Gross Value
could possibly benefit (directly or indirectly) from the trust
Gross value is the value of property as determined under
(including an amended trust) at any time, whether or not
section 2512 and its regulations, without regard to any
the person is designated in the trust instrument as a
prohibitions or restrictions on a person's interest in the
beneficiary and whether or not the person can receive a
property. See section VII of Notice 97-34. Although formal
distribution from the trust in the current year. In addition, a
appraisals are generally not required, you should keep
U.S. beneficiary includes:
contemporaneous records of how you arrived at your
A foreign corporation that is a controlled foreign
good faith estimate.
corporation (as defined in section 957(a)),
A foreign partnership if a U.S. person is a partner of the
Nongrantor Trust
partnership, and
A nongrantor trust is any trust to the extent that the assets
A foreign estate or trust if the estate or trust has a U.S.
of the trust are not treated as owned by a person other
beneficiary.
than the trust. Thus, a nongrantor trust is treated as a
Foreign trust treated as having a U.S. beneficiary. In
taxable entity. A trust may be treated as a nongrantor trust
general, a foreign trust will be treated as having a U.S.
with respect to only a portion of the trust assets. See
beneficiary unless the terms of the trust instrument
Grantor Trust above.
specifically prohibit any distribution of income or corpus to
a U.S. person at any time, even after the death of the U.S.
Owner
transferor or any event terminating the trust, and the trust
An owner of a foreign trust is the person that is treated as
cannot be amended or revised to allow such a distribution.
owning any of the assets of a foreign trust under the
For these purposes, an amount will be treated as
grantor trust rules.
accumulated for the benefit of a U.S. person even if the
U.S. person's interest in the trust is contingent on a future
Property
event and regardless of whether anything is actually
Property means any property, whether tangible or
distributed to a U.S. person during that tax year.
intangible, including cash.
Special rule in case of discretion to identify
beneficiaries. For purposes of the general rule above, if
U.S. Agent
any person has the discretion of making a distribution
A U.S. agent is a U.S. person (defined later) that has a
from the trust to, or for the benefit, of any person, the trust
binding contract with a foreign trust that allows the U.S.
will be treated as having a beneficiary who is a U.S.
person to act as the trust's authorized U.S. agent (see the
person, unless the terms of the trust specifically identify
instructions for Part I, Lines 3a through 3g, later) in
the class of persons to whom such distributions may be
applying sections 7602, 7603, and 7604 with respect to:
made, and none of those persons are U.S. persons during
Any request by the IRS to examine records or produce
the tax year.
testimony related to the proper U.S. tax treatment of
Certain agreements and understandings treated as
amounts distributed, or required to be taken into account
terms of the trust. For purposes of the general rule
under the grantor trust rules, with respect to a foreign
above, if any U.S. person who directly or indirectly
trust; or
transfers property to the trust is directly or indirectly
-3-
Instructions for Form 3520-A (2019)
Excepted Specified Foreign Financial
involved in any agreement or understanding (whether
written, oral, or otherwise) that may result in the income or
Assets Reported
corpus of the trust being paid or accumulated to or for the
benefit of a U.S. person, such agreement or
Check the box only if a U.S. person treated as the owner
understanding will be treated as a term of the trust.
of any portion of the trust under the grantor trust rules also
Certain loans or uncompensated use of trust
files Form 8938, Statement of Specified Foreign Financial
property. If a foreign trust is not already treated as
Assets, for the tax year and includes this form in the total
having a U.S. beneficiary under the rules described
number of Forms 3520-A reported on line 2 of Part IV,
above, the trust will be treated as having a U.S.
Excepted Specified Foreign Financial Assets, of Form
beneficiary if, after March 18, 2010, either:
8938. For more information, see the Instructions for Form
The foreign trust loans cash or marketable securities,
8938, generally, and in particular, Duplicate Reporting and
directly or indirectly, to a U.S. person and the U.S. person
the specific instructions for Part IV.
does not repay the loan at a market rate of interest within
Part I—General Information
a reasonable period of time; or
A U.S. person uses property that is owned by the
Identification numbers. Use social security numbers or
foreign trust and does not pay FMV of the use of such
individual taxpayer identification numbers to identify
property within a reasonable period of time.
individuals. Use employer identification numbers (EINs) to
identify estates, trusts, partnerships, and corporations.
Presumption that foreign trust has U.S. beneficiary.
For transfers of property after March 18, 2010, if a U.S.
Do not enter a preparer tax identification number
person, directly or indirectly, transfers property to a
(PTIN) in any entry space on Form 3520-A other
!
foreign trust (other than a deferred compensation or
than the entry space for “PTIN” at the bottom of
charitable trust described in section 6048(a)(3)(B)(ii)), the
CAUTION
page 1 of the form.
IRS may treat such trust as having a U.S. beneficiary for
purposes of applying section 679(d) to such transfer if the
Address. Include the room, suite, or other unit number
IRS requests information with respect to the transfer and
after the street address. If the post office does not deliver
the U.S. person fails to demonstrate to the satisfaction of
mail to the street address and the U.S. person has a P.O.
the IRS that no portion of the income or corpus of the trust
box, show the box number instead.
may ever be paid to or accumulated for the benefit of a
Foreign address. Do not abbreviate the country name.
U.S. person.
Line 1b(1). Do not enter a social security number (SSN)
U.S. Person
or individual taxpayer identification number (ITIN) in
A U.S. person is:
line 1b(1). Only EINs should be used to identify the foreign
A citizen or resident alien of the United States (see Pub.
trust. If you do not have an EIN for the foreign trust, see
519, U.S. Tax Guide for Aliens, for guidance on
Form SS-4, Application for Employer Identification
determining resident alien status),
Number, and its instructions.
A domestic partnership,
Line 1b(2). A reference ID number is required on
A domestic corporation,
line 1b(2) only in cases where no EIN was entered for the
Any estate (other than a foreign estate, within the
foreign trust on line 1b(1). However, filers are permitted to
meaning of section 7701(a)(31)(A)), and
enter both an EIN on line 1b(1) and a reference ID number
Any domestic trust (defined earlier).
on line 1b(2). If applicable, enter the reference ID number
(defined below) you have assigned to the foreign trust.
Specific Instructions
A “reference ID number” for Form 3520-A purposes is a
number established with respect to the foreign trust by or
Period Covered
on behalf of the U.S. owner of the foreign trust for which
File the 2019 return for calendar year 2019 and fiscal
Form 3520-A reporting is required. This number is used to
years that begin in 2019 and end in 2020. For a fiscal
uniquely identify the foreign trust treated as owned by a
year, fill in the tax year in the space at the top of the form.
U.S. person in order to keep track of the trust from tax
year to tax year. The reference ID number must meet the
Initial Return, Final Return, Amended
requirements set forth below.
Return
Note. Because reference ID numbers are established by
Initial return. If this is the foreign trust's first return,
or on behalf of the U.S. owner of the foreign trust filing
check the “Initial return” box.
Form 3520-A, there is no need to apply to the IRS to
request a reference ID number or for permission to use
Final return. If the foreign trust ceases to exist, check
these numbers.
the “Final return” box.
Note. When a reference ID number is established with
Amended return. If this Form 3520-A is filed to amend a
respect to a foreign trust on a Form 3520-A, then the U.S.
Form 3520-A that you previously filed, check the
owner(s) of the foreign trust should also use that same
“Amended return” box.
reference ID number with respect to such foreign trust on
Form 3520. In general, the reference ID number assigned
to a foreign trust on Form 3520-A has relevance only on
-4-
Instructions for Form 3520-A (2019)
Form 3520-A and Form 3520 (and on any other form that
records or testimony. Any U.S. citizen, resident alien, or
is attached to or associated with Form 3520-A) and
domestic corporation (including a U.S. grantor or U.S.
should not be used with respect to the foreign trust on
beneficiary of a foreign trust) may act as the U.S. agent of
other IRS forms.
the trust.
In order to authorize a U.S. person to act as an agent
Requirements. The reference ID number must be
under section 6048(b), the trust and the agent must enter
alphanumeric (defined below) and no special characters
into a binding agreement substantially in the format that
or spaces are permitted. The length of a given reference
follows. Attach a copy of the authorization to Form
ID number is limited to 50 characters.
3520-A.
For these purposes, the term “alphanumeric” means
the entry can be alphabetical, numeric, or any
AUTHORIZATION OF AGENT
combination of the two.
[ Name of foreign trust ] hereby expressly authorizes [ name of
The same reference ID number must be used
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
consistently from tax year to tax year with respect to the
any request to examine records or produce testimony related to the
foreign trust. If for any reason a reference ID number falls
proper treatment of amounts required to be taken into account
out of use (for example, the foreign trust is terminated and
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
no longer exists), the reference ID number used for that
this authorization of agent to act on behalf of [ name of foreign
foreign trust cannot be used again for another foreign trust
trust ].
for purposes of Form 3520-A reporting.
There are some situations that warrant correlation of a
Signature of trustee
(title)
(date)
new reference ID number with a previous reference ID
(or other authorized person)
number when assigning a new reference ID number to a
foreign trust. See the following examples.
Your Name (type or print)
In the case of a trust that has received assets from
another trust, a Form 3520-A filer must use a reference ID
number for the receiving trust which correlates the
Identification Number (if any)
previous reference ID number for the distributed trust with
Address
the new reference ID number assigned to the receiving
foreign trust.
[ Name of agent ] accepts this appointment to act as agent
You must correlate the reference ID numbers as
for [ name of foreign trust ] for the above purpose. I certify that I
have the authority to execute this authorization of agent to act on
follows: New reference ID number, Old reference ID
behalf of [ name of foreign trust ] and agree to accept service of
number. If there is more than one old reference ID
process for the above purposes.
number, you must enter a space between each number.
As indicated above, the length of a given reference ID
number is limited to 50 characters and each number must
Signature of agent
(title)
(date)
be alphanumeric and no special characters are permitted.
Your Name (type or print)
Note. This correlation requirement applies only to the first
year the new reference ID number is used.
Identification Number (if any)
Line 2. If the trust did not appoint a U.S. agent, attach the
following documents to Form 3520-A.
Address
A summary of the terms of the trust that includes a
Do not enter a PTIN on the authorization form.
summary of any oral agreements or understandings you
!
have with the trustee, whether or not legally enforceable.
A copy of all trust documents (and any revisions),
CAUTION
including the trust instrument, any memoranda of wishes
Line 5. Attach a statement that provides the following
prepared by the trustees summarizing the settlor's wishes,
information concerning the transfer.
any letter of wishes prepared by the settlor summarizing
1. Name, U.S. taxpayer identification number (if any),
his or her wishes, and any similar documents.
and country of organization or residence of the person to
whom the property was transferred.
Note. If these documents have been attached to a Form
2. A general description of the transfer, and any
3520-A filed within the previous 3 years, attach only
broader transaction of which it forms a part, including a
relevant updates.
chronology of the transfers involved and an identification
Lines 3a through 3g. If a foreign trust with a U.S. owner
of the other parties to the transaction to the extent known.
does not have a U.S. agent, the IRS may determine the
3. A description of the property transferred, including
amounts required to be taken into account with respect to
the estimated FMV and the adjusted basis of the property.
the foreign trust by the U.S. owner. See section 6048(b)
(2). In order to avoid this, a U.S. owner of a foreign trust
4. A description of the consideration received by the
should ensure that the foreign trust appoints a U.S.
trust, including its estimated FMV, and for stock or
person to act as the foreign trust's limited agent for
securities, the class or type, amount, and characteristics
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
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Instructions for Form 3520-A (2019)