Instructions for Form 3520-A

Department of the Treasury

Internal Revenue Service

(Rev. December 2023)

Annual Information Return of Foreign Trust With a U.S. Owner
Section references are to the Internal Revenue Code subject to the penalty for the foreign trust’s failure to file a
unless otherwise noted. 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 Rev. Proc. 2014-55 exempts from foreign trust information
Form 3520-A and its instructions, such as legislation reporting certain Canadian retirement plans, including
enacted after they were published, go to IRS.gov/ Canadian registered retirement savings plans (RRSPs)
Form3520A. and Canadian registered retirement income funds
(RRIFs), regardless of whether you are an eligible
What’s New individual described in section 4.01 of Rev. Proc. 2014-55.
Continuous-use form and instructions. Form 3520-A For more information about whether your Canadian
and these instructions have been converted from an retirement plan qualifies for an exemption from foreign
annual revision to continuous use. Both the form and trust information reporting, see sections 3 and 5 of Rev.
instructions will be updated as needed. For the most Proc. 2014-55, 2014-44 I.R.B. 753, available at
recent version, go to IRS.gov/Form3520A. IRS.gov/IRB/2014-44_IRB#RP-2014-55.
Tax year and statements. You are required to enter the Rev. Proc. 2020-17 exempts from foreign trust
tax year at the top of the first page and all statements. For information reporting certain eligible individuals’
a fiscal-year filer, enter the tax year that the fiscal tax year transactions with, and ownership of, certain tax-favored
begins with on all statements. foreign trusts that are established and operated
exclusively or almost exclusively to provide pension or
Reminders retirement benefits, or to provide medical, disability, or
educational benefits. For more information about whether
Exemption from information reporting under section you are an eligible individual, and whether your foreign
6048. Rev. Proc. 2020-17 exempts from foreign trust trust qualifies for an exemption from foreign trust
information reporting certain eligible individuals’ information reporting, see section 5 of Rev. Proc. 2020-17,
transactions and ownership. See Exceptions To Filing, 2020-12 I.R.B. 539, available at IRS.gov/IRB/
later. 2020-12_IRB#REV-PROC-2020-17.

General Instructions The exemptions from foreign trust information reporting

described in Rev. Proc. 2014-55 and Rev. Proc. 2020-17
Purpose of Form do not affect any reporting obligations under section
6038D or under any other provision of the U.S. law,
Form 3520-A is the annual information return of a foreign including the requirement to file Financial Crimes
trust with at least one U.S. owner. The form provides Enforcement (FinCEN) Form 114, Report of Foreign Bank
information about the foreign trust, its U.S. beneficiaries, and Financial Accounts (FBAR), imposed by 31 U.S.C.
and any U.S. person who is treated as an owner of any section 5314 and the regulations thereunder. For more
portion of the foreign trust under the grantor trust rules information, go to IRS.gov/FBAR.
(sections 671 through 679).
When and Where To File
Who Must File File a complete Form 3520-A (including the statements on
A foreign trust with a U.S. owner must file Form 3520-A in pages 3 through 5) with the Internal Revenue Service
order for the U.S. owner to satisfy its annual information Center, P.O. Box 409101, Ogden, UT 84409, by the 15th
reporting requirements under section 6048(b). Each U.S. day of the 3rd month after the end of the trust's tax year.
person treated as an owner of any portion of a foreign However, if you are filing a substitute Form 3520-A with
trust under the grantor trust rules (sections 671 through your Form 3520, then your substitute Form 3520-A is due
679) is responsible for ensuring that the foreign trust files by the due date of Form 3520. See the Instructions for
Form 3520-A and furnishes the required annual Form 3520 for the due date of the Form 3520. Give copies
statements to its U.S. owners and U.S. beneficiaries. If a of the Foreign Grantor Trust Owner Statement (pages
foreign trust fails to file Form 3520-A, the U.S. owner must 3 and 4 of Form 3520-A) and the Foreign Grantor Trust
complete and attach a substitute Form 3520-A for the Beneficiary Statement (page 5 of Form 3520-A) to the
foreign trust to the U.S. owner’s Form 3520, Annual Return U.S. owners and U.S. beneficiaries by the 15th day of the
To Report Transactions With Foreign Trusts and Receipt of 3rd month after the end of the trust's tax year, or later if an
Certain Foreign Gifts, by the due date of the U.S. owner’s extension of time to file is granted or if filing a substitute
Form 3520 (and not the due date for the Form 3520-A, 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 to the U.S. owner’s Form 3520 by the due date of
3520-A (including the statements on pages 3 through 5) the U.S. owner’s Form 3520 (and not the due date for
will be granted by filing a properly completed Form 7004, Form 3520-A) in order to avoid being subject to a penalty
Application for Automatic Extension of Time To File for the foreign trust’s failure to file a Form 3520-A. For
Certain Business Income Tax, Information, and Other example, a substitute Form 3520-A that, to the best of the
Returns, with the foreign trust’s employer identification U.S. owner’s ability, is completed and attached to the U.S.
number (EIN) by the 15th day of the 3rd month after the owner’s Form 3520 by the due date for the Form 3520
end of the trust’s tax year. For details, see Form 7004. (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 Additional penalties will be imposed if the
7004 with the foreign trust’s EIN must be filed in order to noncompliance continues for more than 90 days after the
request an extension of time to file Form 3520-A. IRS mails a notice of failure to comply with the required
reporting. If the IRS can determine the gross value
Form 3520-A must have all required attachments to be (defined later) of the portion of the trust’s assets treated as
considered complete. owned by the U.S. person at the close of the tax year, then
Who Must Sign the penalties will be reduced as necessary to assure that
the aggregate amount of such penalties does not exceed
If the return is filed by: the gross value of the trust. For more information, see
• An individual or fiduciary, it must be signed and dated section 6677.
by that individual or fiduciary;
• A partnership, it must be signed and dated by a general Criminal penalties may be imposed under sections
partner or limited liability company member; or 7203, 7206, and 7207 for failure to file on time and for
• A corporation, it must be signed and dated by the filing a false or fraudulent return.
president, vice president, treasurer, assistant treasurer,
chief accounting officer, or any other corporate officer Note. If a U.S. owner of a foreign trust is subject to a
(such as a tax officer) authorized to sign. penalty imposed under section 6662 for an underpayment
of tax required to be shown on a return, then such penalty
Note. If the return is a substitute Form 3520-A that is may be increased under section 6662(j) for any portion of
being completed by a U.S. owner and attached to the U.S. an underpayment that is attributable to any transaction
owner’s Form 3520, then the U.S. owner must sign and involving any asset with respect to which information was
date the return and provide the U.S. owner’s name and required to be provided on Form 3520-A. For more
taxpayer identification number (TIN) on the “Title” line of information about undisclosed foreign financial asset
the signature box. For more information about the understatements, see section 6662(j).
requirements to file a substitute Form 3520-A, see Line 22
Reasonable cause. No penalties will be imposed if the
in the Instructions for Form 3520.
taxpayer can demonstrate that the failure to comply with
The paid preparer must complete the required preparer the reporting requirements was due to reasonable cause
information and: and not willful neglect.
• Sign the return in the space provided for the preparer's
signature, and Note. The fact that a foreign country would impose
• Give a copy of the return to the filer. penalties for disclosing the required information is not
reasonable cause. Similarly, reluctance on the part of a
Inconsistent Treatment of Items foreign fiduciary or provisions in the trust instrument that
The U.S. beneficiary’s and U.S. owner’s tax returns must prevent the disclosure of required information is not
be consistent with the Form 3520-A filed by the foreign reasonable cause. See section 6677(d).
trust unless you report the inconsistency to the IRS. If the
U.S. beneficiaries or U.S. owners are treating items on Definitions
their tax returns differently from the way the foreign trust
treated them on its return, they must file Form 8082, Distribution
Notice of Inconsistent Treatment or Administrative A distribution received directly or indirectly from a foreign
Adjustment Request (AAR). See Form 8082 for more trust for section 6048(c) reporting purposes is any
details. gratuitous transfer of money or other property from a
foreign trust, whether or not a portion of such trust is
Penalties treated as a grantor trust under the grantor trust rules of
The U.S. owner is subject to an initial penalty equal to the sections 671 through 679, and without regard to whether
greater of $10,000 or 5% of the gross value (defined later) the recipient is designated as a beneficiary by the terms of
of the portion of the trust's assets treated as owned by the the trust. A distribution includes the receipt of trust corpus
U.S. person at the close of that tax year if the foreign trust and the receipt of a gift or bequest described in section
(a) fails to file a timely Form 3520-A, or (b) does not 663(a).
furnish all of the information required by section 6048(b) or
A distribution also includes constructive transfers from
includes incorrect information. See section 6677(a)
a foreign trust. For example, if charges you make on a
through (c).
credit card are paid by a foreign trust or guaranteed or
If a foreign trust fails to file a Form 3520-A, the U.S. secured by the assets of a foreign trust, the amount
owner must complete and attach a substitute Form charged will be treated as a distribution to you by the

-2- Instructions for Form 3520-A (Rev. 12-2023)

foreign trust. Similarly, if you write checks on a foreign having a U.S. beneficiary and is therefore treated as a
trust's bank account, the amount will be treated as a grantor trust under the grantor trust rules.
distribution. Also, if you receive a payment from a foreign
trust in exchange for property transferred to the trust or Gross Value
services rendered to the trust, and the fair market value Gross value is the value of property as determined under
(FMV) of the payment you received exceeds the FMV of section 2512 and its regulations, without regard to any
the property transferred or services rendered, the excess prohibitions or restrictions on a person's interest in the
will be treated as a distribution to you. See section V of property. See section VII of Notice 97-34. Although formal
Notice 97-34, 1997-25 I.R.B. 22, available at IRS.gov/pub/ appraisals are generally not required, you should keep
irs-irbs/irb97-25.pdf. contemporaneous records of how you arrived at your
Example 1. If you sell stock with an FMV of $100 to a good faith estimate.
foreign trust and receive $150 in exchange, you have
received a distribution of $50.
Nongrantor Trust
A nongrantor trust is any trust to the extent that the assets
Example 2. If you receive $100 from the trust for of the trust are not treated as owned by a person other
services performed by you for the trust, and the services than the trust under the grantor trust rules in sections 671
have an FMV of $20, you have received a distribution of through 679. Thus, a nongrantor trust is treated as a
$80. taxable entity. A trust may be treated as a nongrantor trust
Foreign Trust and Domestic Trust with respect to only a portion of the trust assets. See
Grantor Trust, earlier.
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 An owner of a foreign trust is the person that is treated as
primary supervision over the administration of the trust, owning any of the assets of a foreign trust under the
and grantor trust rules.
2. One or more U.S. persons have the authority to
control all substantial decisions of the trust. Property
Property means any property, whether tangible or
Grantor intangible, including cash.
A grantor includes any person who creates a trust or
directly or indirectly makes a gratuitous transfer of cash or U.S. Agent
other property to a trust. A grantor includes any person A U.S. agent is a U.S. person (defined later) that has a
treated as the owner of any part of a foreign trust's assets binding contract with a foreign trust that allows the U.S.
under sections 671 through 679, excluding section 678. person to act as the trust's authorized U.S. agent (see the
instructions for Lines 3a through 3g under Part I, later) in
Note. If a partnership or corporation makes a gratuitous applying sections 7602, 7603, and 7604 with respect to:
transfer to a trust, the partners or shareholders are • Any request by the IRS to examine records or produce
generally treated as the grantors of the trust, unless the testimony related to the proper U.S. tax treatment of
partnership or corporation made the transfer for a amounts distributed, or required to be taken into account
business purpose of the partnership or corporation. under the grantor trust rules, with respect to a foreign
If a trust makes a gratuitous transfer to another trust, trust; or
the grantor of the transferor trust is treated as the grantor • Any summons by the IRS for such records or testimony.
of the transferee trust, except that if a person with a A U.S. grantor, a U.S. beneficiary, or a domestic
general power of appointment over the transferor trust corporation controlled by the grantor or beneficiary may
exercises that power in favor of another trust, such person act as a U.S. agent. However, you may not treat the
is treated as the grantor of the transferee trust, even if the foreign trust as having a U.S. agent unless you enter the
grantor of the transferor trust is treated as the owner of the name, address, and TIN of the U.S. agent on lines 3a
transferor trust. through 3g of Part I of the form. See Taxpayer
Grantor Trust identification numbers (TINs), later.
A grantor trust is any trust to the extent that the assets of If a foreign trust with a U.S. owner does not have a U.S.
the trust are treated as owned by a person other than the agent, the IRS may redetermine the amounts required to
trust. See the grantor trust rules in sections 671 through be taken into account with respect to the foreign trust by
679. A part of the trust may be treated as a grantor trust to the U.S. owner. See section 6048(b)(2). The agency
the extent that only a portion of the trust assets are owned relationship must be established by the time the U.S.
by a person other than the trust. person files Form 3520-A for the relevant tax year and
must continue as long as the statute of limitations remains
Note. Under the HIRE Act, effective after March 18, 2010, open for the relevant tax year. If the agent’s responsibility
if a foreign trust directly or indirectly loans cash or as an agent of the trust is terminated for any reason (for
marketable securities to a U.S. person who does not repay example, agent’s resignation, agent’s liquidation, or
the loan at a market rate of interest, or allows a U.S. agent’s death), see section IV.B of Notice 97-34.
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-

U.S. Beneficiary foreign trust (other than a deferred compensation or
A U.S. beneficiary generally includes any U.S. person that charitable trust described in section 6048(a)(3)(B)(ii)), the
could possibly benefit (directly or indirectly) from the trust IRS may treat such trust as having a U.S. beneficiary for
(including an amended trust) at any time, whether or not purposes of applying section 679(d) to such transfer if the
the person is designated in the trust instrument as a IRS requests information with respect to the transfer and
beneficiary and whether or not the person can receive a the U.S. person fails to demonstrate to the satisfaction of
distribution from the trust in the current year. In addition, a the IRS that no portion of the income or corpus of the trust
U.S. beneficiary includes: may ever be paid to or accumulated for the benefit of a
• A foreign corporation that is a controlled foreign U.S. person.
corporation (as defined in section 957(a)),
U.S. Person
• A foreign partnership if a U.S. person is a partner of the
partnership, and A U.S. person is:
• A foreign estate or trust if the estate or trust has a U.S. • A citizen or resident of the United States, including dual
beneficiary. See section II of Notice 97-34 and the residents who claim the benefits under an income tax
regulations under section 679 for additional information. treaty (see Pub. 519, U.S. Tax Guide for Aliens, for
guidance on determining resident alien status);
Foreign trust treated as having a U.S. beneficiary. In • A domestic partnership;
general, if a U.S. person, directly or indirectly, transfers • A domestic corporation;
property to a foreign trust (other than a deferred • Any estate (other than a foreign estate, within the
compensation or charitable trust described in section meaning of section 7701(a)(31)(A)); and
6048(a)(3)(B)(ii)), the foreign trust will be treated as • Any domestic trust (defined earlier).
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 Specific Instructions
death of the U.S. transferor or any event terminating the
trust, and the trust cannot be amended or revised to allow Period Covered
such a distribution. For these purposes, an amount will be For calendar-year filers, fill in the "calendar year" space at
treated as accumulated for the benefit of a U.S. person the top of the form. For fiscal-year filers, fill in the "tax year
even if the U.S. person's interest in the trust is contingent beginning" and "ending" spaces at the top of the form.
on a future event and regardless of whether anything is
actually distributed to a U.S. person during that tax year. Initial Return, Final Return, Amended
Special rule in case of discretion to identify Return, Extension Filed, Substitute
beneficiaries. For purposes of the general rule above, if
any person has the discretion of making a distribution Form 3520-A
from the trust to, or for the benefit of, any person, the trust Initial return. If this is the foreign trust's first return, check
will be treated as having a beneficiary who is a U.S. the “Initial return” box.
person, unless the terms of the trust specifically identify
the class of persons to whom such distributions may be Final return. If the foreign trust ceases to exist, check the
made, and none of those persons are U.S. persons during “Final return” box.
the tax year. Amended return. If this Form 3520-A is filed to amend a
Certain agreements and understandings treated as Form 3520-A that you previously filed, check the
terms of the trust. For purposes of the general rule “Amended return” box.
above, if any U.S. person who directly or indirectly
Extension filed. If the Form 7004 was timely filed to
transfers property to the trust is directly or indirectly
request an extension for the Form 3520-A, check the
involved in any agreement or understanding (whether
“Extension filed” box.
written, oral, or otherwise) that may result in the income or
corpus of the trust being paid or accumulated to, or for the Substitute Form 3520-A. If you are a U.S. owner of the
benefit of, a U.S. person, such agreement or foreign trust filing a substitute Form 3520-A and attaching
understanding will be treated as a term of the trust. it to your Form 3520, check the “Substitute Form 3520-A”
Certain loans or uncompensated use of trust box.
property. If a foreign trust is not already treated as having
a U.S. beneficiary under the rules described above, the Excepted Specified Foreign Financial
trust will be treated as having a U.S. beneficiary if, after Assets Reported
March 18, 2010, either: Check the box only if a U.S. person treated as the owner
• The foreign trust loans cash or marketable securities, of any portion of the trust under the grantor trust rules also
directly or indirectly, to a U.S. person and the U.S. person files Form 8938, Statement of Specified Foreign Financial
does not repay the loan at a market rate of interest within a Assets, for the tax year and includes this form in the total
reasonable period of time; or number of Forms 3520-A reported on line 16 of Part IV,
• A U.S. person, directly or indirectly, uses property that is Excepted Specified Foreign Financial Assets, of Form
owned by the foreign trust and does not pay FMV of the 8938. For more information, see the Instructions for Form
use of such property within a reasonable period of time. 8938, generally, and in particular, Duplicative reporting
Presumption that foreign trust has U.S. beneficiary. If and the specific instructions for Part IV.
a U.S. person, directly or indirectly, transfers property to a

-4- Instructions for Form 3520-A (Rev. 12-2023)

Part I—General Information In order to authorize a U.S. person to act as an agent
under section 6048(b), the trust and the agent must enter
Taxpayer identification numbers (TINs). Use social into a binding agreement substantially in the format that
security numbers (SSNs) or individual taxpayer follows. Attach a copy of the Authorization of Agent form to
identification numbers (ITINs) to identify individuals. Use Form 3520-A. This form should be attached to Form
EINs to identify estates, trusts, partnerships, and 3520-A every 3 years unless there has been a change,
corporations. Don’t use an SSN in place of an EIN. and if so, it should be attached in the year with respect to
Applying for an EIN. If you don’t have an EIN, you may which the change relates.
apply for one online at IRS.gov/EIN. If the principal AUTHORIZATION OF AGENT
business was created or organized outside of the United [ Name of foreign trust ] hereby expressly authorizes [ name of
States or U.S. territories, you may also apply for an EIN by 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
calling 267-941-1099 (toll call). any request to examine records or produce testimony related to the
Do not enter a preparer tax identification number 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
! (PTIN) in any entry space on Form 3520-A other records or testimony. I certify that I have the authority to execute
CAUTION than the entry space for “PTIN” at the bottom of this authorization of agent to act on behalf of [ name of foreign
page 1 of the form. trust ].

Address. Include the room, suite, or other unit number Signature of trustee (title) (date)
after the street address. If the post office does not deliver (or other authorized person)
mail to the street address and the U.S. person has a P.O.
box, show the box number instead.
Your Name (type or print)
Foreign address. Do not abbreviate the country name.
Line 1b. Enter the EIN of the foreign trust. Do not enter Taxpayer Identification Number (if any)

an SSN or ITIN. Only EINs should be used to identify the

foreign trust. Address

Line 2. If the trust appointed a U.S. agent, enter the year [ Name of agent ] accepts this appointment to act as agent
for [ name of foreign trust ] for the above purpose. I certify that I
the Authorization of Agent form was last attached. have the authority to execute this authorization of agent to act on
behalf of [ name of foreign trust ] and agree to accept service of
Note. The Authorization of Agent form should be process for the above purposes.
attached every 3 years unless there has been a change,
and if so, it should be attached in the year with respect to
Signature of agent (title) (date)
which the change relates.
If the trust did not appoint a U.S. agent, attach the
following documents to Form 3520-A. Your Name (type or print)

• A summary of the terms of the trust that includes a

summary of any oral agreements or understandings you Taxpayer Identification Number (if any)

have with the trustee, whether or not legally enforceable.

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

including the trust instrument, any memoranda of wishes

prepared by the trustees summarizing the settlor's wishes, Do not enter a PTIN on the Authorization of Agent
any letter of wishes prepared by the settlor summarizing ! form.
his or her wishes, and any similar documents. CAUTION

• A copy of the trust’s organizational chart, including Line 5. Enter the number of Foreign Grantor Trust Owner
ownership structure and percentage of ownership. Statements (pages 3 and 4) included with this Form
3520-A.
Note. If these documents have been attached to a Form
3520-A filed within the previous 3 years, attach only Line 6. Enter the number of Foreign Grantor Trust
relevant updates. Beneficiary Statements (page 5) included with this Form
3520-A.
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 Sign here. In general, the trustee of the foreign trust must
amounts required to be taken into account with respect to sign the Form 3520-A. However, if the U.S. owner of the
the foreign trust by the U.S. owner. See section 6048(b) foreign trust is filing a substitute Form 3520-A, the U.S.
(2). In order to avoid this, a U.S. owner of a foreign trust owner must sign. See Who Must Sign, earlier.
should ensure that the foreign trust appoints a U.S. person
to act as the foreign trust's limited agent for purposes of Part II—Foreign Trust Income
applying sections 7602, 7603, and 7604 with respect to a Statement
request by the IRS to examine records or produce Include all income from U.S. and non-U.S. sources. This
testimony, or a summons by the IRS for such records or financial statement must reasonably reflect the trust's
testimony. Any U.S. citizen, resident, or domestic income under U.S. income tax principles.
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) -5-

Income fiduciary must make an interest allocation according to the
rules in Temporary Regulations section 1.163-8T.
Line 1. Interest. Report all taxable interest income that
was received during the tax year. Examples of taxable Do not include interest paid on indebtedness incurred
interest include, but are not limited to, interest from the or continued to purchase or carry obligations on which the
following. interest is wholly exempt from income tax.
• 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 tax imposed by the authority of a foreign country.
institutions.
Line 10b. State and local taxes. Enter any deductible
• Notes, loans, and mortgages. state and local income or real property taxes paid or
• U.S. Treasury bills, notes, and bonds. incurred during the tax year that are not reported
• U.S. savings bonds. elsewhere in Part II.
• Original issue discount.
• Income received as a regular interest holder of a real Do not deduct on line 10b or on any other line of Part II:
estate mortgage investment conduit (REMIC). • Federal income taxes;
For taxable bonds acquired after 1987, amortizable • Estate, inheritance, legacy, succession, and gift taxes;
or
bond premium is treated as an offset to the interest
income instead of as a separate interest deduction. See • Federal duties and excise taxes.
Pub. 550, Investment Income and Expenses. Line 11. Amortization and depreciation (depletion). A
reasonable amount is allowed as a depreciation deduction
Line 2. Dividends. Report all ordinary dividends
for the exhaustion, wear, and tear of:
received during the tax year.
• Property used in a trade or business, or
Note. Report capital gain distributions on Line 5. Capital • Property held for the production of income.
gains (losses) of this section. Line 12. Trustee and advisor fees. Enter the deductible
Line 4. Income (loss) from partnerships, fiduciaries, fees paid or incurred to the fiduciary for administering the
etc. Enter the trust's share of income or (losses) from trust during the tax year.
partnerships, S corporations, estates, other trusts, and Line 13. Charitable contributions. Generally, any part
REMICs. of the income reported on line 8 that is paid (or treated as
If the trust received a Schedule K-1 from a partnership, paid) during the tax year for a charitable purpose specified
S corporation, or other flow-through entity, use the in section 170(c) is allowed as a deduction. It is not
corresponding lines on Form 3520-A to report the interest, necessary that the charitable organization be created or
dividends, capital gains, etc., from the flow-through entity. organized in the United States.
Line 5. Capital gains (losses). For capital gains or Line 14. Other expenses. Enter other items of expense
(losses) attributable to a U.S. owner, use Schedule D not listed on lines 9 through 13. List the type and amount
(corporate or individual, whichever applies) and Form on an attached statement if the trust has more than one
8949, Sales and Other Dispositions of Capital Assets, if item.
applicable. Line 17a. FMV of total distributions. Attach a
Line 6. Ordinary gains (losses). Enter the ordinary gain statement that provides the following information
or (loss) from the sale or exchange of property other than concerning the transfer.
capital assets and also from involuntary conversions 1. Name, U.S. TIN (if any), and country of organization
(other than casualty or theft). or residence of the person to whom the property was
Line 7. Other income. Enter other items of income not transferred.
included on lines 1 through 6. List the types and amounts 2. A general description of the transfer, and any
on an attached statement if the trust has more than one broader transaction of which it forms a part, including a
item. chronology of the transfers involved and an identification
Items to be reported on line 7 include any part of a total of the other parties to the transaction to the extent known.
distribution shown on Form 1099-R, Distributions From 3. A description of the property transferred, including
Pensions, Annuities, Retirement or Profit-Sharing Plans, the estimated FMV and the adjusted basis of the property.
IRAs, Insurance Contracts, etc., that is treated as ordinary 4. A description of the consideration received by the
income. For more information, see the instructions for trust, including its estimated FMV, and for stock or
Form 4972, Tax on Lump-Sum Distributions. securities, the class or type, amount, and characteristics
of the interest received. If no consideration was received
Expenses by the trust, indicate whether the trust or a U.S. owner
Line 9. Interest expense. Enter the amount of interest exercises any powers over the entity to which the property
(subject to limitations) paid or incurred by the trust on was transferred (including a description of such powers),
amounts borrowed by the trust, or on debt acquired by the and identify the name, U.S. TIN (if any), and country of
trust, that is not reported elsewhere in Part II. organization or residence of all beneficial owners of such
If the proceeds of a loan were used for more than one entity.
purpose (for example, to purchase a portfolio investment 5. To the extent known, a description of any
and to acquire an interest in a passive activity), the subsequent transfer of the property, including the name,

-6- Instructions for Form 3520-A (Rev. 12-2023)

U.S. TIN (if any), and country of organization or residence within the last 3 years. Specify the years the documents
of the person to whom the property was subsequently were attached. See Line 2 under Part I, earlier, for a list of
transferred. documents the trust is required to attach to Form 3520-A.
The statement must also contain a description of the Statement of Foreign Trust Income Attributable
trust ownership structure setting forth the name, U.S. TIN to U.S. Owner
(if any), and country of organization of all entities in which
the trust has an ownership interest, including an On the top of each statement, fill in the tax year.
ownership chart showing the trust's position in the chain of ! For fiscal-year filers, use the year in which your
ownership and the percentages of ownership. CAUTION fiscal tax year begins.

Note. The term “person” includes an individual or an The amounts on the statement must include the portion
entity, whether U.S. or foreign. See the definition of U.S. of income reported by the foreign trust deemed
person, earlier. A foreign person is an individual or entity attributable to the U.S. owner.
that is not a U.S. person. The foreign trust may need to furnish to the U.S. owner
Lines 17b and 17c. Distributions to U.S. owners and additional information, including applicable statements, to
U.S. beneficiaries. Separately list the total amount of ensure that the owner accurately reports income and
distributions (including the uncompensated use of trust expenses on the owner's U.S. income tax return.
property) to each U.S. owner and U.S. beneficiary. List the
full name, TIN, date of distribution, and FMV on the date Foreign Grantor Trust Beneficiary
of distribution (dollar amount) for each U.S. owner and Statement
U.S. beneficiary who receives a distribution. If more space
is needed, attach a statement. On the top of each statement, fill in the tax year.
! For fiscal-year filers, use the year in which your
Prepare a separate Foreign Grantor Trust Owner
fiscal tax year begins.
Statement (see below) or Foreign Grantor Trust
CAUTION

Beneficiary Statement (see below) for each U.S. owner A copy of this statement (page 5 of Form 3520-A) must
or for each U.S. beneficiary who receives a distribution be (a) furnished to each U.S. beneficiary who receives a
from the trust. distribution, directly or indirectly, from the foreign trust
during the tax year; and (b) included with this Form
Part III—Foreign Trust Balance Sheet 3520-A. See the definitions for U.S. beneficiary and
List all assets and liabilities of the trust, including those distribution provided earlier in these instructions.
assets and liabilities attributable to the portion(s) of the
Exception. Do not complete this statement for a U.S.
trust (if any) not treated as owned by a U.S. person.
person for any portion of the trust of which that U.S.
The balance sheet should reflect FMV. Include person is treated as the owner; instead, complete the
certificates of deposit as cash on line 1. Foreign Grantor Trust Owner Statement for that U.S.
person (as described earlier).
For purposes of completing Part III, it is not necessary
or required to reconcile any differences between the book The statement must be furnished to the U.S.
and tax basis of assets and liabilities. beneficiary no later than the 15th day of the 3rd month
Line 18. Accumulated trust income. Include the total following the end of the trust's tax year, or later if an
amount of trust income accumulated and not distributed. extension of time to file is granted, or if filing a substitute
Form 3520-A. See When and Where To File, earlier.
Foreign Grantor Trust Owner TINs and addresses. See the instructions for Part I,
Statement 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
! For fiscal-year filers, use the year in which your information on this form to carry out the Internal Revenue
CAUTION fiscal tax year begins. laws of the United States. You are required to give us the
A copy of this statement (pages 3 and 4 of Form information. We need it to ensure that you are complying
3520-A) must be (a) furnished to each U.S. person who is with these laws and to allow us to figure and collect the
treated as an owner of the foreign trust under the grantor right amount of tax.
trust rules, and (b) included with this Form 3520-A. The
You are not required to provide the information
statement must be furnished to each U.S. owner no later
requested on a form that is subject to the Paperwork
than the 15th day of the 3rd month following the end of the
Reduction Act unless the form displays a valid OMB
trust's tax year, or later if an extension of time to file is
control number. Books or records relating to a form or its
granted, or if filing a substitute Form 3520-A. See When
instructions must be retained for as long as their contents
and Where To File, earlier.
may become material in the administration of any Internal
TINs and addresses. See the instructions for Part I, Revenue law.
earlier, for information on entering TINs and addresses.
The time needed to complete and file the form will vary
Line 8. Trust documents. If the trust did not appoint a
depending on individual circumstances. The estimated
U.S. agent, list the documents attached to the current year
average time is:
Form 3520-A and those attached to a Form 3520-A filed

Instructions for Form 3520-A (Rev. 12-2023) -7-

Recordkeeping . . . . . . . . . . . . . . . . . 37 hr., 18 min. simpler, we would be happy to hear from you. You can
send us comments from IRS.gov/FormComments. Or you
Learning about the law or the can send your comments to Internal Revenue Service, Tax
form . . . . . . . . . . . . . . . . . . . . . . . . . 2 hr., 40 min. Forms and Publications Division, 1111 Constitution Ave.
Preparing and sending the form to NW, IR-6526, Washington, DC 20224. Do not send the
the IRS . . . . . . . . . . . . . . . . . . . . . . . 3 hr., 24 min. form to this office. Instead, see When and Where To File,
earlier.

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)