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טופס 3520-A הוראות

הוראות טופס 3520-A, החזר מידע שנתי של אמון זר עם הבעלים של ארה"ב

דצמבר 2023

טפסים קשורים

  • טופס 3520-A - החזר מידע שנתי של אמון זר עם הבעלים של ארה"ב (תחת סעיף 6048(ב)
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הורד
Department of the Treasury  
Internal Revenue Service  
Instructions for Form 3520-A  
Annual Information Return of Foreign Trust With a U.S. Owner  
(Rev. December 2023)  
Section references are to the Internal Revenue Code  
unless otherwise noted.  
subject to the penalty for the foreign trust’s failure to file a  
Form 3520-A. See Line 22 in the Instructions for Form  
3520. See Penalties, later.  
Future Developments  
Exceptions To Filing  
For the latest information about developments related to  
Form 3520-A and its instructions, such as legislation  
enacted after they were published, go to IRS.gov/  
Rev. Proc. 2014-55 exempts from foreign trust information  
reporting certain Canadian retirement plans, including  
Canadian registered retirement savings plans (RRSPs)  
and Canadian registered retirement income funds  
(RRIFs), regardless of whether you are an eligible  
individual described in section 4.01 of Rev. Proc. 2014-55.  
For more information about whether your Canadian  
retirement plan qualifies for an exemption from foreign  
trust information reporting, see sections 3 and 5 of Rev.  
Proc. 2014-55, 2014-44 I.R.B. 753, available at  
What’s New  
Continuous-use form and instructions. Form 3520-A  
and these instructions have been converted from an  
annual revision to continuous use. Both the form and  
instructions will be updated as needed. For the most  
recent version, go to IRS.gov/Form3520A.  
Rev. Proc. 2020-17 exempts from foreign trust  
information reporting certain eligible individuals’  
transactions with, and ownership of, certain tax-favored  
foreign trusts that are established and operated  
exclusively or almost exclusively to provide pension or  
retirement benefits, or to provide medical, disability, or  
educational benefits. For more information about whether  
you are an eligible individual, and whether your foreign  
trust qualifies for an exemption from foreign trust  
information reporting, see section 5 of Rev. Proc. 2020-17,  
2020-12 I.R.B. 539, available at IRS.gov/IRB/  
Tax year and statements. You are required to enter the  
tax year at the top of the first page and all statements. For  
a fiscal-year filer, enter the tax year that the fiscal tax year  
begins with on all statements.  
Reminders  
Exemption from information reporting under section  
6048. Rev. Proc. 2020-17 exempts from foreign trust  
information reporting certain eligible individuals’  
transactions and ownership. See Exceptions To Filing,  
later.  
The exemptions from foreign trust information reporting  
described in Rev. Proc. 2014-55 and Rev. Proc. 2020-17  
do not affect any reporting obligations under section  
6038D or under any other provision of the U.S. law,  
including the requirement to file Financial Crimes  
Enforcement (FinCEN) Form 114, Report of Foreign Bank  
and Financial Accounts (FBAR), imposed by 31 U.S.C.  
section 5314 and the regulations thereunder. For more  
information, go to IRS.gov/FBAR.  
General Instructions  
Purpose of Form  
Form 3520-A is the annual information return of a foreign  
trust with at least one U.S. owner. The form provides  
information about the foreign trust, its U.S. beneficiaries,  
and any U.S. person who is treated as an owner of any  
portion of the foreign trust under the grantor trust rules  
(sections 671 through 679).  
When and Where To File  
Who Must File  
File a complete Form 3520-A (including the statements on  
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.  
However, if you are filing a substitute Form 3520-A with  
your Form 3520, then your substitute Form 3520-A is due  
by the due date of Form 3520. See the Instructions for  
Form 3520 for the due date of the Form 3520. Give copies  
of the Foreign Grantor Trust Owner Statement (pages  
3 and 4 of Form 3520-A) and the Foreign Grantor Trust  
Beneficiary Statement (page 5 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 tax year, or later if an  
extension of time to file is granted or if filing a substitute  
Form 3520-A.  
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.  
person treated as an owner of any portion of a foreign  
trust under the grantor trust rules (sections 671 through  
679) is responsible for ensuring that the foreign trust files  
Form 3520-A and furnishes the required annual  
statements to its U.S. owners and U.S. beneficiaries. If a  
foreign trust fails to file Form 3520-A, the U.S. owner must  
complete and attach a substitute Form 3520-A for the  
foreign trust to the U.S. owner’s Form 3520, Annual Return  
To Report Transactions With Foreign Trusts and Receipt of  
Certain Foreign Gifts, by the due date of the U.S. owner’s  
Form 3520 (and not the due date for the Form 3520-A,  
which is otherwise due by the 15th day of the 3rd month  
after the end of the trust’s tax year) in order to avoid being  
Oct 10, 2023  
Cat. No. 25096U  
   
An automatic 6-month extension of time to file Form  
3520-A (including the statements on pages 3 through 5)  
will be granted by filing a properly completed Form 7004,  
Application for Automatic Extension of Time To File  
Certain Business Income Tax, Information, and Other  
Returns, with the foreign trust’s employer identification  
number (EIN) by the 15th day of the 3rd month after the  
end of the trust’s tax year. For details, see Form 7004.  
3520-A to the 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 3520-A) in order to avoid being subject to a penalty  
for the foreign trust’s failure to file a Form 3520-A. For  
example, a substitute Form 3520-A that, to the best of the  
U.S. owner’s ability, is completed and attached to the U.S.  
owner’s Form 3520 by the due date for the Form 3520  
(such as April 15 for the U.S. owners who are individuals)  
is considered timely filed.  
Note. An extension of time to file an income tax return will  
not provide an extension of time to file Form 3520-A. Form  
7004 with the foreign trust’s EIN must be filed in order to  
request an extension of time to file Form 3520-A.  
Form 3520-A must have all required attachments to be  
considered complete.  
Additional penalties will be imposed if the  
noncompliance continues for more than 90 days after the  
IRS mails a notice of failure to comply with the required  
reporting. If the IRS can determine the gross value  
(defined later) of the portion of the trust’s assets treated as  
owned by the U.S. person at the close of the tax year, then  
the penalties will be reduced as necessary to assure that  
the aggregate amount of such penalties does not exceed  
the gross value of the trust. For more information, see  
section 6677.  
Who Must Sign  
If the return is filed by:  
An individual or fiduciary, it must be signed and dated  
by that individual or fiduciary;  
A partnership, it must be signed and dated by a general  
Criminal penalties may be imposed under sections  
7203, 7206, and 7207 for failure to file on time and for  
filing a false or fraudulent return.  
partner or limited liability company member; or  
A corporation, it must be signed and dated by the  
president, vice president, treasurer, assistant treasurer,  
chief accounting officer, or any other corporate officer  
(such as a tax officer) authorized to sign.  
Note. If a U.S. owner of a foreign trust is subject to a  
penalty imposed under section 6662 for an underpayment  
of tax required to be shown on a return, then such penalty  
may be increased under section 6662(j) for any portion of  
an underpayment that is attributable to any transaction  
involving any asset with respect to which information was  
required to be provided on Form 3520-A. For more  
information about undisclosed foreign financial asset  
understatements, see section 6662(j).  
Reasonable cause. No penalties will be imposed if the  
taxpayer can demonstrate that the failure to comply with  
the reporting requirements was due to reasonable cause  
and not willful neglect.  
Note. If the return is a substitute Form 3520-A that is  
being completed by a U.S. owner and attached to the U.S.  
owner’s Form 3520, then the U.S. owner must sign and  
date the return and provide the U.S. owner’s name and  
taxpayer identification number (TIN) on the “Title” line of  
the signature box. For more information about the  
requirements to file a substitute Form 3520-A, see Line 22  
The paid preparer must complete the required preparer  
information and:  
Sign the return in the space provided for the preparer's  
Note. The fact that a foreign country would impose  
penalties for disclosing the required information is not  
reasonable cause. Similarly, reluctance on the part of a  
foreign fiduciary or provisions in the trust instrument that  
prevent the disclosure of required information is not  
reasonable cause. See section 6677(d).  
signature, and  
Give a copy of the return to the filer.  
Inconsistent Treatment of Items  
The U.S. beneficiary’s and U.S. owner’s tax returns must  
be consistent with the Form 3520-A filed by the foreign  
trust unless you report the inconsistency to the IRS. If the  
U.S. beneficiaries or U.S. owners are treating items on  
their tax returns differently from the way the foreign trust  
treated them on its return, they must file Form 8082,  
Notice of Inconsistent Treatment or Administrative  
Adjustment Request (AAR). See Form 8082 for more  
details.  
Definitions  
Distribution  
A distribution received directly or indirectly from a foreign  
trust for section 6048(c) reporting purposes is any  
gratuitous transfer of money or other property from a  
foreign trust, whether or not a portion of such trust is  
treated as a grantor trust under the grantor trust rules of  
sections 671 through 679, and without regard to whether  
the recipient is designated as a beneficiary by the terms of  
the trust. A distribution includes the receipt of trust corpus  
and the receipt of a gift or bequest described in section  
663(a).  
Penalties  
The U.S. owner is subject to an initial penalty equal to the  
greater of $10,000 or 5% of the gross value (defined later)  
of the portion 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 file a timely Form 3520-A, or (b) does not  
furnish all of the information required by section 6048(b) or  
includes incorrect information. See section 6677(a)  
through (c).  
A distribution also includes constructive transfers from  
a foreign trust. For example, if charges you make on a  
credit card are paid by a foreign trust or guaranteed or  
secured by the assets of a foreign trust, the amount  
charged will be treated as a distribution to you by the  
If a foreign trust fails to file a Form 3520-A, the U.S.  
owner must complete and attach a substitute Form  
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Instructions for Form 3520-A (Rev. 12-2023)  
     
foreign trust. Similarly, if you write checks on a foreign  
trust's bank account, the amount will be treated as a  
distribution. Also, if you receive a payment from a foreign  
trust in exchange for property transferred to the trust or  
services rendered to the trust, and the fair market value  
(FMV) of the payment you received exceeds the FMV of  
the property transferred or services rendered, the excess  
will be treated as a distribution to you. See section V of  
Notice 97-34, 1997-25 I.R.B. 22, available at IRS.gov/pub/  
Example 1. If you sell stock with an FMV of $100 to a  
foreign trust and receive $150 in exchange, you have  
received a distribution of $50.  
Example 2. If you receive $100 from the trust for  
services performed by you for the trust, and the services  
have an FMV of $20, you have received a distribution of  
$80.  
having a U.S. beneficiary and is therefore treated as a  
grantor trust under the grantor trust rules.  
Gross Value  
Gross value is the value of property as determined under  
section 2512 and its regulations, without regard to any  
prohibitions or restrictions on a person's interest in the  
property. See section VII of Notice 97-34. Although formal  
appraisals are generally not required, you should keep  
contemporaneous records of how you arrived at your  
good faith estimate.  
Nongrantor Trust  
A nongrantor trust is any trust to the extent that the assets  
of the trust are not treated as owned by a person other  
than the trust under the grantor trust rules in sections 671  
through 679. Thus, a nongrantor trust is treated as a  
taxable entity. A trust may be treated as a nongrantor trust  
with respect to only a portion of the trust assets. See  
Grantor Trust, earlier.  
Foreign Trust and Domestic Trust  
A foreign trust is any trust other than a domestic trust. A  
domestic trust is any trust if:  
Owner  
1. A court within the United States is able to exercise  
primary supervision over the administration of the trust,  
and  
An owner of a foreign trust is the person that is treated as  
owning any of the assets of a foreign trust under the  
grantor trust rules.  
2. One or more U.S. persons have the authority to  
Property  
control all substantial decisions of the trust.  
Property means any property, whether tangible or  
intangible, including cash.  
Grantor  
A grantor includes any person who creates a trust or  
directly or indirectly makes a gratuitous transfer of cash or  
other property to a trust. A grantor includes any person  
treated as the owner of any part of a foreign trust's assets  
under sections 671 through 679, excluding section 678.  
U.S. Agent  
A U.S. agent is a U.S. person (defined later) that has a  
binding contract with a foreign trust that allows the U.S.  
person to act as the trust's authorized U.S. agent (see the  
instructions for Lines 3a through 3g under Part I, later) in  
applying sections 7602, 7603, and 7604 with respect to:  
Note. If a partnership or corporation makes a gratuitous  
transfer to a trust, the partners or shareholders are  
generally treated as the grantors of the trust, unless the  
partnership or corporation made the transfer for a  
business purpose of the partnership or corporation.  
If a trust makes a gratuitous transfer to another trust,  
the grantor of the transferor trust is treated as the grantor  
of the transferee trust, except that if a person with a  
general power of appointment over the transferor trust  
exercises that power in favor of another trust, such person  
is treated as the grantor of the transferee trust, even if the  
grantor of the transferor trust is treated as the owner of the  
transferor trust.  
Any request by the IRS to examine records or produce  
testimony related to the proper U.S. tax treatment of  
amounts distributed, or required to be taken into account  
under the grantor trust rules, with respect to a foreign  
trust; or  
Any summons by the IRS for such records or testimony.  
A U.S. grantor, a U.S. beneficiary, or a domestic  
corporation controlled by the grantor or beneficiary may  
act as a U.S. agent. However, you may not treat the  
foreign trust as having a U.S. agent unless you enter the  
name, address, and TIN of the U.S. agent on lines 3a  
through 3g of Part I of the form. See Taxpayer  
Grantor Trust  
If a foreign trust with a U.S. owner does not have a U.S.  
agent, the IRS may redetermine the amounts required to  
be taken into account with respect to the foreign trust by  
the U.S. owner. See section 6048(b)(2). The agency  
relationship must be established by the time the U.S.  
person files Form 3520-A for the relevant tax year and  
must continue as long as the statute of limitations remains  
open for the relevant tax year. If the agent’s responsibility  
as an agent of the trust is terminated for any reason (for  
example, agent’s resignation, agent’s liquidation, or  
agent’s death), see section IV.B of Notice 97-34.  
A grantor trust is any trust to the extent that the assets of  
the trust are treated as owned by a person other than the  
trust. See the grantor trust rules in sections 671 through  
679. A part of the trust may be treated as a grantor trust to  
the extent that only a portion of the trust assets are owned  
by a person other than the trust.  
Note. Under the HIRE Act, effective after March 18, 2010,  
if a foreign trust directly or indirectly loans cash or  
marketable securities to a U.S. person who does not repay  
the loan at a market rate of interest, or allows a U.S.  
person to use trust property without paying FMV within a  
reasonable period of time, the trust will be treated as  
Instructions for Form 3520-A (Rev. 12-2023)  
-3-  
     
foreign trust (other than a deferred compensation or  
charitable trust described in section 6048(a)(3)(B)(ii)), the  
IRS may treat such trust as having a U.S. beneficiary for  
purposes of applying section 679(d) to such transfer if the  
IRS requests information with respect to the transfer and  
the U.S. person fails to demonstrate to the satisfaction of  
the IRS that no portion of the income or corpus of the trust  
may ever be paid to or accumulated for the benefit of a  
U.S. person.  
U.S. Beneficiary  
A U.S. beneficiary generally includes any U.S. person that  
could possibly benefit (directly or indirectly) from the trust  
(including an amended trust) at any time, whether or not  
the person is designated in the trust instrument as a  
beneficiary and whether or not the person can receive a  
distribution from the trust in the current year. In addition, a  
U.S. beneficiary includes:  
A foreign corporation that is a controlled foreign  
corporation (as defined in section 957(a)),  
A foreign partnership if a U.S. person is a partner of the  
U.S. Person  
A U.S. person is:  
partnership, and  
A citizen or resident of the United States, including dual  
A foreign estate or trust if the estate or trust has a U.S.  
residents who claim the benefits under an income tax  
guidance on determining resident alien status);  
beneficiary. See section II of Notice 97-34 and the  
regulations under section 679 for additional information.  
Foreign trust treated as having a U.S. beneficiary. In  
general, if a U.S. person, directly or indirectly, transfers  
property to a foreign trust (other than a deferred  
compensation or charitable trust described in section  
6048(a)(3)(B)(ii)), the foreign trust will be treated as  
having a U.S. beneficiary unless the terms of the trust  
instrument 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 cannot be amended or revised to allow  
such a distribution. For these purposes, an amount will be  
treated as 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 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  
any person has the discretion of making a distribution  
from the trust to, or for the benefit of, any person, the trust  
will be treated as having a beneficiary who is a U.S.  
person, unless the terms of the trust specifically identify  
the class of persons to whom such distributions may be  
made, and none of those persons are U.S. persons during  
the tax year.  
A domestic partnership;  
A domestic corporation;  
Any estate (other than a foreign estate, within the  
meaning of section 7701(a)(31)(A)); and  
Any domestic trust (defined earlier).  
Specific Instructions  
Period Covered  
For calendar-year filers, fill in the "calendar year" space at  
the top of the form. For fiscal-year filers, fill in the "tax year  
beginning" and "ending" spaces at the top of the form.  
Initial Return, Final Return, Amended  
Return, Extension Filed, Substitute  
Form 3520-A  
Initial return. If this is the foreign trust's first return, check  
the “Initial return” box.  
Final return. If the foreign trust ceases to exist, check the  
“Final return” box.  
Amended return. If this Form 3520-A is filed to amend a  
Form 3520-A that you previously filed, check the  
“Amended return” box.  
Extension filed. If the Form 7004 was timely filed to  
request an extension for the Form 3520-A, check the  
“Extension filed” box.  
Substitute Form 3520-A. If you are a U.S. owner of the  
foreign trust filing a substitute Form 3520-A and attaching  
it to your Form 3520, check the “Substitute Form 3520-A”  
box.  
Certain agreements and understandings treated as  
terms of the trust. For purposes of the general rule  
above, if any U.S. person who directly or indirectly  
transfers property to the trust is directly or indirectly  
involved in any agreement or understanding (whether  
written, oral, or otherwise) that may result in the income or  
corpus of the trust being paid or accumulated to, or for the  
benefit of, a U.S. person, such agreement or  
understanding will be treated as a term of the trust.  
Certain loans or uncompensated use of trust  
property. If a foreign trust is not already treated as having  
a U.S. beneficiary under the rules described above, the  
trust will be treated as having a U.S. beneficiary if, after  
March 18, 2010, either:  
Excepted Specified Foreign Financial  
Assets Reported  
Check the box only if a U.S. person treated as the owner  
of any portion of the trust under the grantor trust rules also  
files Form 8938, Statement of Specified Foreign Financial  
Assets, for the tax year and includes this form in the total  
number of Forms 3520-A reported on line 16 of Part IV,  
Excepted Specified Foreign Financial Assets, of Form  
8938. For more information, see the Instructions for Form  
8938, generally, and in particular, Duplicative reporting  
and the specific instructions for Part IV.  
The foreign trust loans cash or marketable securities,  
directly or indirectly, to a U.S. person and the U.S. person  
does not repay the loan at a market rate of interest within a  
reasonable period of time; or  
A U.S. person, directly or indirectly, uses property that is  
owned by the foreign trust and does not pay FMV of the  
use of such property within a reasonable period of time.  
Presumption that foreign trust has U.S. beneficiary. If  
a U.S. person, directly or indirectly, transfers property to a  
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Instructions for Form 3520-A (Rev. 12-2023)  
   
In order to authorize a U.S. person to act as an agent  
under section 6048(b), the trust and the agent must enter  
into a binding agreement substantially in the format that  
follows. Attach a copy of the Authorization of Agent form to  
Form 3520-A. This form should be attached to Form  
3520-A every 3 years unless there has been a change,  
and if so, it should be attached in the year with respect to  
which the change relates.  
Part I—General Information  
Taxpayer identification numbers (TINs). Use social  
security numbers (SSNs) or individual taxpayer  
identification numbers (ITINs) to identify individuals. Use  
EINs to identify estates, trusts, partnerships, and  
corporations. Don’t use an SSN in place of an EIN.  
Applying for an EIN. If you don’t have an EIN, you may  
apply for one online at IRS.gov/EIN. If the principal  
business was created or organized outside of the United  
States or U.S. territories, you may also apply for an EIN by  
calling 267-941-1099 (toll call).  
AUTHORIZATION OF AGENT  
[
Name of foreign trust  
]
hereby expressly authorizes [ name 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  
any request to examine records or produce testimony related to the  
proper treatment of amounts required to be taken into account  
under the rules of section 6048(b)(2)(A) or to any summons for such  
records or testimony. I certify that I have the authority to execute  
Do not enter a preparer tax identification number  
(PTIN) in any entry space on Form 3520-A other  
!
this authorization of agent to act on behalf of  
trust ].  
[
name of foreign  
CAUTION  
than the entry space for “PTIN” at the bottom of  
page 1 of the form.  
Address. Include the room, suite, or other unit number  
after the street address. If the post office does not deliver  
mail to the street address and the U.S. person has a P.O.  
box, show the box number instead.  
Signature of trustee  
(or other authorized person)  
(title)  
(date)  
Your Name (type or print)  
Taxpayer Identiꢀcation Number (if any)  
Address  
Foreign address. Do not abbreviate the country name.  
Line 1b. Enter the EIN of the foreign trust. Do not enter  
an SSN or ITIN. Only EINs should be used to identify the  
foreign trust.  
[
Name of agent  
for name of foreign trust  
have the authority to execute this authorization of agent to act on  
behalf of name of foreign trust and agree to accept service of  
]
accepts this appointment to act as agent  
Line 2. If the trust appointed a U.S. agent, enter the year  
[
]
for the above purpose. I certify that I  
the Authorization of Agent form was last attached.  
[
]
process for the above purposes.  
Note. The Authorization of Agent form should be  
attached every 3 years unless there has been a change,  
and if so, it should be attached in the year with respect to  
which the change relates.  
Signature of agent  
(title)  
(date)  
If the trust did not appoint a U.S. agent, attach the  
Your Name (type or print)  
Taxpayer Identiꢀcation Number (if any)  
Address  
following documents to Form 3520-A.  
A summary of the terms of the trust that includes a  
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),  
including the trust instrument, any memoranda of wishes  
prepared by the trustees summarizing the settlor's wishes,  
any letter of wishes prepared by the settlor summarizing  
his or her wishes, and any similar documents.  
Do not enter a PTIN on the Authorization of Agent  
form.  
!
CAUTION  
A copy of the trust’s organizational chart, including  
Line 5. Enter the number of Foreign Grantor Trust Owner  
Statements (pages 3 and 4) included with this Form  
3520-A.  
Line 6. Enter the number of Foreign Grantor Trust  
Beneficiary Statements (page 5) included with this Form  
3520-A.  
Sign here. In general, the trustee of the foreign trust must  
sign the Form 3520-A. However, if the U.S. owner of the  
foreign trust is filing a substitute Form 3520-A, the U.S.  
owner must sign. See Who Must Sign, earlier.  
ownership structure and percentage of ownership.  
Note. If these documents have been attached to a Form  
3520-A filed within the previous 3 years, attach only  
relevant updates.  
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  
amounts required to be taken into account with respect to  
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  
should ensure that the foreign trust appoints a U.S. person  
to act as the foreign trust's limited agent for purposes of  
applying sections 7602, 7603, and 7604 with respect to a  
request by the IRS to examine records or produce  
Part II—Foreign Trust Income  
Statement  
Include all income from U.S. and non-U.S. sources. This  
financial statement must reasonably reflect the trust's  
income under U.S. income tax principles.  
testimony, or a summons by the IRS for such records or  
testimony. Any U.S. citizen, resident, or domestic  
corporation (including a U.S. grantor or U.S. beneficiary of  
a foreign trust) may act as the U.S. agent of the trust.  
Instructions for Form 3520-A (Rev. 12-2023)  
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fiduciary must make an interest allocation according to the  
rules in Temporary Regulations section 1.163-8T.  
Do not include interest paid on indebtedness incurred  
or continued to purchase or carry obligations on which the  
interest is wholly exempt from income tax.  
Income  
Line 1. Interest. Report all taxable interest income that  
was received during the tax year. Examples of taxable  
interest include, but are not limited to, interest from the  
following.  
Accounts (including certificates of deposit and money  
Line 10a. Foreign taxes. A foreign tax includes only a  
market accounts) with banks, credit unions, and thrift  
institutions.  
tax imposed by the authority of a foreign country.  
Line 10b. State and local taxes. Enter any deductible  
state and local income or real property taxes paid or  
incurred during the tax year that are not reported  
elsewhere in Part II.  
Notes, loans, and mortgages.  
U.S. Treasury bills, notes, and bonds.  
U.S. savings bonds.  
Original issue discount.  
Do not deduct on line 10b or on any other line of Part II:  
Income received as a regular interest holder of a real  
Federal income taxes;  
estate mortgage investment conduit (REMIC).  
Estate, inheritance, legacy, succession, and gift taxes;  
For taxable bonds acquired after 1987, amortizable  
bond premium is treated as an offset to the interest  
income instead of as a separate interest deduction. See  
or  
Federal duties and excise taxes.  
Line 11. Amortization and depreciation (depletion). A  
reasonable amount is allowed as a depreciation deduction  
for the exhaustion, wear, and tear of:  
Line 2. Dividends. Report all ordinary dividends  
received during the tax year.  
Property used in a trade or business, or  
Property held for the production of income.  
Note. Report capital gain distributions on Line 5. Capital  
gains (losses) of this section.  
Line 4. Income (loss) from partnerships, fiduciaries,  
etc. Enter the trust's share of income or (losses) from  
partnerships, S corporations, estates, other trusts, and  
REMICs.  
Line 12. Trustee and advisor fees. Enter the deductible  
fees paid or incurred to the fiduciary for administering the  
trust during the tax year.  
Line 13. Charitable contributions. Generally, any part  
of the income reported on line 8 that is paid (or treated as  
paid) during the tax year for a charitable purpose specified  
in section 170(c) is allowed as a deduction. It is not  
necessary that the charitable organization be created or  
organized in the United States.  
If the trust received a Schedule K-1 from a partnership,  
S corporation, or other flow-through entity, use the  
corresponding lines on Form 3520-A to report the interest,  
dividends, capital gains, etc., from the flow-through entity.  
Line 14. Other expenses. Enter other items of expense  
not listed on lines 9 through 13. List the type and amount  
on an attached statement if the trust has more than one  
item.  
Line 17a. FMV of total distributions. Attach a  
statement that provides the following information  
concerning the transfer.  
1. Name, U.S. TIN (if any), and country of organization  
or residence of the person to whom the property was  
transferred.  
2. A general description of the transfer, and any  
broader transaction of which it forms a part, including a  
chronology of the transfers involved and an identification  
of the other parties to the transaction to the extent known.  
Line 5. Capital gains (losses). For capital gains or  
(losses) attributable to a U.S. owner, use Schedule D  
(corporate or individual, whichever applies) and Form  
8949, Sales and Other Dispositions of Capital Assets, if  
applicable.  
Line 6. Ordinary gains (losses). Enter the ordinary gain  
or (loss) from the sale or exchange of property other than  
capital assets and also from involuntary conversions  
(other than casualty or theft).  
Line 7. Other income. Enter other items of income not  
included on lines 1 through 6. List the types and amounts  
on an attached statement if the trust has more than one  
item.  
Items to be reported on line 7 include any part of a total  
distribution shown on Form 1099-R, Distributions From  
Pensions, Annuities, Retirement or Profit-Sharing Plans,  
IRAs, Insurance Contracts, etc., that is treated as ordinary  
income. For more information, see the instructions for  
Form 4972, Tax on Lump-Sum Distributions.  
3. A description of the property transferred, including  
the estimated FMV and the adjusted basis of the property.  
4. A description of the consideration received by the  
trust, including its estimated FMV, and for stock or  
securities, the class or type, amount, and characteristics  
of the interest received. If no consideration was received  
by the trust, indicate whether the trust or a U.S. owner  
exercises any powers over the entity to which the property  
was transferred (including a description of such powers),  
and identify the name, U.S. TIN (if any), and country of  
organization or residence of all beneficial owners of such  
entity.  
Expenses  
Line 9. Interest expense. Enter the amount of interest  
(subject to limitations) paid or incurred by the trust on  
amounts borrowed by the trust, or on debt acquired by the  
trust, that is not reported elsewhere in Part II.  
If the proceeds of a loan were used for more than one  
purpose (for example, to purchase a portfolio investment  
and to acquire an interest in a passive activity), the  
5. To the extent known, a description of any  
subsequent transfer of the property, including the name,  
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Instructions for Form 3520-A (Rev. 12-2023)  
 
U.S. TIN (if any), and country of organization or residence  
of the person to whom the property was subsequently  
transferred.  
within the last 3 years. Specify the years the documents  
were attached. See Line 2 under Part I, earlier, for a list of  
documents the trust is required to attach to Form 3520-A.  
The statement must also contain a description of the  
trust ownership structure setting forth the name, U.S. TIN  
(if any), and country of organization of all entities in which  
the trust has an ownership interest, including an  
Statement of Foreign Trust Income Attributable  
to U.S. Owner  
On the top of each statement, fill in the tax year.  
For fiscal-year filers, use the year in which your  
ownership chart showing the trust's position in the chain of  
ownership and the percentages of ownership.  
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CAUTION  
fiscal tax year begins.  
The amounts on the statement must include the portion  
of income reported by the foreign trust deemed  
attributable to the U.S. owner.  
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  
that is not a U.S. person.  
Lines 17b and 17c. Distributions to U.S. owners and  
U.S. beneficiaries. Separately list the total amount of  
distributions (including the uncompensated use of trust  
property) to each U.S. owner and U.S. beneficiary. List the  
full name, TIN, date of distribution, and FMV on the date  
of distribution (dollar amount) for each U.S. owner and  
U.S. beneficiary who receives a distribution. If more space  
is needed, attach a statement.  
Prepare a separate Foreign Grantor Trust Owner  
Statement (see below) or Foreign Grantor Trust  
Beneficiary Statement (see below) for each U.S. owner  
or for each U.S. beneficiary who receives a distribution  
from the trust.  
The foreign trust may need to furnish to the U.S. owner  
additional information, including applicable statements, to  
ensure that the owner accurately reports income and  
expenses on the owner's U.S. income tax return.  
Foreign Grantor Trust Beneficiary  
Statement  
On the top of each statement, fill in the tax year.  
For fiscal-year filers, use the year in which your  
!
CAUTION  
fiscal tax year begins.  
A copy of this statement (page 5 of Form 3520-A) must  
be (a) furnished to each U.S. beneficiary who receives a  
distribution, directly or indirectly, from the foreign trust  
during the tax year; and (b) included with this Form  
3520-A. See the definitions for U.S. beneficiary and  
distribution provided earlier in these instructions.  
Exception. Do not complete this statement for a U.S.  
person for any portion of the trust of which that U.S.  
person is treated as the owner; instead, complete the  
Foreign Grantor Trust Owner Statement for that U.S.  
person (as described earlier).  
Part III—Foreign Trust Balance Sheet  
List all assets and liabilities of the trust, including those  
assets and liabilities attributable to the portion(s) of the  
trust (if any) not treated as owned by a U.S. person.  
The balance sheet should reflect FMV. Include  
certificates of deposit as cash on line 1.  
For purposes of completing Part III, it is not necessary  
or required to reconcile any differences between the book  
and tax basis of assets and liabilities.  
The statement must be furnished to the U.S.  
beneficiary no later than the 15th day of the 3rd month  
following the end of the trust's tax year, or later if an  
extension of time to file is granted, or if filing a substitute  
Form 3520-A. See When and Where To File, earlier.  
Line 18. Accumulated trust income. Include the total  
amount of trust income accumulated and not distributed.  
Foreign Grantor Trust Owner  
Statement  
TINs and addresses. See the instructions for Part I,  
earlier, for information on entering TINs and addresses.  
On the top of each statement, fill in the tax year.  
Paperwork Reduction Act Notice. We ask for the  
information on this form to carry out the Internal Revenue  
laws of the United States. You are required to give us the  
information. We need it to ensure that you are complying  
with these laws and to allow us to figure and collect the  
right amount of tax.  
For fiscal-year filers, use the year in which your  
!
CAUTION  
fiscal tax year begins.  
A copy of this statement (pages 3 and 4 of Form  
3520-A) must be (a) furnished to each U.S. person who is  
treated as an owner of the foreign trust under the grantor  
trust rules, and (b) included with this Form 3520-A. The  
statement must be furnished to each U.S. owner no later  
than the 15th day of the 3rd month following the end of the  
trust's tax year, or later if an extension of time to file is  
granted, or if filing a substitute Form 3520-A. See When  
and Where To File, earlier.  
You are not required to provide the information  
requested on a form that is subject to the Paperwork  
Reduction Act unless the form displays a valid OMB  
control number. Books or records relating to a form or its  
instructions must be retained for as long as their contents  
may become material in the administration of any Internal  
Revenue law.  
TINs and addresses. See the instructions for Part I,  
earlier, for information on entering TINs and addresses.  
The time needed to complete and file the form will vary  
depending on individual circumstances. The estimated  
average time is:  
Line 8. Trust documents. If the trust did not appoint a  
U.S. agent, list the documents attached to the current year  
Form 3520-A and those attached to a Form 3520-A filed  
Instructions for Form 3520-A (Rev. 12-2023)  
-7-  
simpler, we would be happy to hear from you. You can  
send us comments from IRS.gov/FormComments. Or you  
can send your comments to Internal Revenue Service, Tax  
Forms and Publications Division, 1111 Constitution Ave.  
NW, IR-6526, Washington, DC 20224. Do not send the  
form to this office. Instead, see When and Where To File,  
earlier.  
Recordkeeping. . . . . . . . . . . . . . . . .  
37 hr., 18 min.  
2 hr., 40 min.  
3 hr., 24 min.  
Learning about the law or the  
form . . . . . . . . . . . . . . . . . . . . . . . . .  
Preparing and sending the form to  
the IRS . . . . . . . . . . . . . . . . . . . . . . .  
If you have comments concerning the accuracy of  
these time estimates or suggestions for making this form  
-8-  
Instructions for Form 3520-A (Rev. 12-2023)