Form 3520-A: Annual Information Return of Foreign Trust With a U.S. Owner

Form 3520-A is used to report information about certain foreign trusts with a U.S. owner, including trust, owner, and beneficiary information.

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Introduction

Form 3520-A is a federal information return associated with a foreign trust that has at least one U.S. owner. The form provides information about the foreign trust, its U.S. owners, and its U.S. beneficiaries.

The form is generally used to provide information about the trust’s income, assets, distributions, owners, and beneficiaries. Certain required statements may also need to be provided to U.S. owners and beneficiaries.

What Is Form 3520-A?

Form 3520-A is an annual information return for a foreign trust with a U.S. owner. It is used to report information about the foreign trust and the U.S. persons treated as owners of portions of the trust.

Form 3520-A generally includes information such as:

Foreign trust information
U.S. owner information
U.S. beneficiary information
Foreign trust income
Trust assets and liabilities
Distributions to U.S. owners and beneficiaries
Foreign Grantor Trust Owner Statements
Foreign Grantor Trust Beneficiary Statements
Other required trust information

The reporting requirements depend on the type of foreign trust and the circumstances of the U.S. owner.

Who Uses Form 3520-A?

Form 3520-A generally applies to a foreign trust that has at least one U.S. owner. The U.S. owner is responsible for ensuring that the required annual information reporting is completed when applicable.

Form 3520-A may be relevant to:

Foreign trusts with a U.S. owner
U.S. persons treated as owners of a foreign trust
U.S. beneficiaries of certain foreign trusts
Foreign trustees responsible for filing the form
U.S. owners who may need to file a substitute Form 3520-A when the foreign trust does not file the required return

Not every foreign trust requires Form 3520-A. The reporting requirements depend on the trust structure, ownership, beneficiaries, and applicable tax rules.

What Information Is Needed?

The information needed to complete Form 3520-A generally includes information about the foreign trust, its U.S. owners and beneficiaries, trust income, assets, liabilities, and distributions. The required information can vary depending on the trust and the taxpayer’s circumstances.

You may need:

Foreign trust name and identifying information
Foreign trust address
Foreign trust tax identification information
U.S. agent information, when applicable
U.S. owner information
U.S. beneficiary information
Trust income information
Trust asset information
Trust liability information
Distribution information
Information about trust ownership
Supporting financial and trust records

Keep records supporting the information reported on Form 3520-A and any required statements.

How to Fill Out/Complete Form 3520-A

Form 3520-A contains several parts that provide information about the foreign trust, its income, assets, owners, and beneficiaries. The form also includes statements that may need to be provided to U.S. owners and beneficiaries.

Complete the sections that apply to the foreign trust and maintain the supporting trust, financial, and tax records used to prepare the form.

Section 1

Section 1 generally provides general information about the foreign trust, including identifying information, the trust’s address, identifying numbers, and information about a U.S. agent when applicable.

Provide the requested trust and U.S. agent information and make sure the information agrees with the trust’s records and other applicable filings.

Section 2

Section 2 generally reports income received by the foreign trust during the applicable tax year. The information can include different types of income and other amounts that are relevant to the trust’s financial activity.

Use the trust’s financial records to report the applicable income information. Make sure the amounts reported reasonably reflect the trust’s income for the reporting period.

Section 3

Section 3 generally provides information about the foreign trust’s assets and liabilities. The balance sheet is used to provide a generalSection 4 generally provides information about U.S. persons who are treated as owners of the foreign trust. Information may be required about each applicable U.S. owner and the financial picture of the trust.

Review the trust’s financial records and report the applicable assets and liabilities. Maintain records supporting the values reported on the form.

Section 4

Section 4 generally provides information about U.S. persons who are treated as owners of the foreign trust. Information may be required about each applicable U.S. owner and the portion of the trust treated as owned by that person.

Provide the requested owner information and make sure the ownership information agrees with the trust documents and applicable tax records.

Section 5

Section 5 generally provides information related to distributions made by the foreign trust to U.S. owners and U.S. beneficiaries. Information may include the recipient, date, and amount or value of the distribution.

Review the trust’s distribution records and report the applicable information accurately. Keep records supporting each reported distribution.

Section 6

Section 6 generally relates to the Foreign Grantor Trust Owner Statement. This statement provides information to a U.S. person who is treated as an owner of a portion of the foreign trust.

Complete the applicable owner statement and provide the required information to the U.S. owner. Keep a copy of the statement with the trust’s records.

Section 7

Section 7 generally relates to the Foreign Grantor Trust Beneficiary Statement. This statement provides applicable information to a U.S. beneficiary who receives a distribution from the foreign trust.

Complete the applicable beneficiary statement when required and provide it to the appropriate U.S. beneficiary. Retain a copy with the trust’s supporting records.

Additional Information

Additional information or supporting statements may be required depending on the foreign trust, its ownership, its beneficiaries, and the transactions reported. Supporting documentation may help explain information reported on Form 3520-A.

Review the applicable form requirements and make sure all required statements and attachments are included before the form is submitted.

Final Review

Review Form 3520-A after completing all applicable sections. Check the foreign trust information, U.S. owner information, U.S. beneficiary information, U.S. agent information, trust income, assets, liabilities, distributions, ownership information, Foreign Grantor Trust Owner Statements, Foreign Grantor Trust Beneficiary Statements, supporting records, and final information reported.

A final review can help identify reporting errors before the form is submitted. Trustees and U.S. owners should retain Form 3520-A, trust documents, financial records, income records, asset and liability records, distribution records, owner and beneficiary statements, tax documents, and other supporting records with the trust’s records.

Common Mistakes

Common Form 3520-A mistakes can result from incomplete trust information, incorrect financial information, missing statements, or misunderstanding the reporting responsibilities associated with a foreign trust. Reviewing the trust documents and financial records before preparing the form can help reduce reporting errors.

Some common issues include:

Failing to recognize that Form 3520-A may apply
Providing incorrect foreign trust information
Reporting incorrect income amounts
Reporting incorrect asset or liability information
Reporting incorrect distribution amounts
Providing incomplete U.S. owner information
Providing incomplete U.S. beneficiary information
Failing to provide required owner or beneficiary statements
Failing to include required attachments
Failing to keep supporting trust and financial records
Confusing Form 3520-A with Form 3520

Review the completed Form 3520-A carefully and make sure the information agrees with the trust’s records and other applicable tax filings.

Related IRS Forms

Form 3520-A may be associated with other federal tax forms depending on the foreign trust and the circumstances of the U.S. owner or beneficiary. Additional forms may be required to report foreign trust transactions, foreign financial assets, or other international tax information.

Commonly related forms may include:

Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts
Form 8938, Statement of Specified Foreign Financial Assets
Form 1040, U.S. Individual Income Tax Return
FinCEN Form 114, Report of Foreign Bank and Financial Accounts
Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns
Other forms or schedules that may apply to foreign trusts or foreign financial activities

The forms required will depend on the foreign trust and the individual circumstances of the U.S. owner or beneficiary.

Where to File or Submit

Form 3520-A has its own filing requirements and is generally filed separately from a U.S. owner’s regular federal income tax return. In certain circumstances, a U.S. owner may need to prepare and attach a substitute Form 3520-A to Form 3520 when the foreign trust does not file the required form.

The applicable filing method, filing location, and timing can depend on the circumstances of the foreign trust and whether a regular or substitute Form 3520-A is being filed.

Current IRS Form & Instructions

Use the Form 3520-A and instructions that apply to the tax year being filed. Federal tax forms and instructions may be revised over time, so the appropriate version should be used for the applicable reporting period.

The general information on this page is intended to remain useful across multiple tax years. Specific filing requirements, deadlines, definitions, reporting requirements, and other details may change and should be reviewed for the applicable tax year.

Important Information / Disclaimer

This Form 3520-A guide is provided for general informational purposes only and is not tax, legal, or accounting advice. Foreign trust reporting can be complex, and the requirements may depend on the trust’s structure, ownership, beneficiaries, income, assets, distributions, and other circumstances.

Taxpayers, trustees, and other responsible parties should review the requirements applicable to the tax year being reported and consider consulting a qualified tax professional when dealing with foreign trusts or other complex international tax matters. This page is intended as a general educational guide and should not be used as a substitute for reviewing the applicable tax forms, instructions, and tax rules.