What is Form 3520?
Form 3520 is an informational return required for U.S. taxpayers who have transactions with foreign trusts or receive large gifts from foreign entities. This form is essential for reporting significant amounts of money or property, such as gifts or inheritances, coming from abroad. By filing Form 3520, you help the IRS monitor your financial interactions with foreign entities, ensuring compliance with U.S. tax regulations and promoting transparency in your financial dealings.
What is Form 3520 used for?
Form 3520 serves important purposes for U.S. taxpayers with international financial interactions. Here's what you need to know:
- Reporting transactions with foreign trusts: Includes asset transfers and distributions.
- Reporting ownership of foreign trusts: For U.S. persons, covering grantors and other owners.
- Reporting receipt of certain foreign gifts: For large gifts or inheritances from foreign individuals.
- Notifying the IRS of interest in grantor trusts: To maintain transparency and compliance.
How to fill out Form 3520?
- 1
Identify if you need to file Form 3520 based on foreign trust transactions or large foreign gifts.
- 2
Gather details about transactions, including dates, descriptions, and fair market values.
- 3
Complete Schedules A, B, and C, detailing your obligations and transfers.
- 4
Attach necessary supporting documents like trust instruments and previous filings.
- 5
Ensure consistency with U.S. beneficiary and owner tax returns to match the foreign trust's Form 3520-A.
Who is required to fill out Form 3520?
Form 3520 must be completed by U.S. citizens, lawful permanent residents, and individuals meeting the substantial presence test who have dealings with foreign trusts or received significant foreign gifts. It is also required for those treated as owners of parts of foreign trusts.
After completing Form 3520, the filer must sign and date the return, providing their name and taxpayer identification number (TIN). A paid preparer must also sign and provide their information.
When is Form 3520 not required?
Form 3520 is not required for transfers to specific tax-favored foreign trusts outlined in sections 402(b), 404(a)(4), or 404A. Transfers to employee benefit plans or trusts that defer taxes until distribution or are tax-exempt also do not require reporting. Always confirm your situation or consult a tax professional to ensure compliance with IRS regulations.
When is Form 3520 due?
The deadline for Form 3520 is April 15th for calendar year taxpayers. If you are outside the U.S. or in military service, it is due by June 15th. You can request an extension, but the form must be filed by October 15th for calendar year taxpayers.
How to get a blank Form 3520?
To get a blank Form 3520, simply visit our platform. The form is pre-loaded in our editor, so you can start filling it out right away. Remember, PDF Guru aids in filling and downloading forms, but not in filing them with the IRS.
How to sign Form 3520?
To sign Form 3520, you can use an electronic signature like a typed name, a scanned handwritten signature, or a signature created with a stylus on a touchscreen. A handwritten signature is also valid. After filling out the form using PDF Guru, download it for your records. Remember to check for the latest updates regarding submission guidelines, as PDF Guru does not support this process.
Where to file Form 3520?
Once you've completed Form 3520, it’s time to submit it by mail. Remember, this form cannot be filed online, so print it out and prepare for mailing.
Ensure all required attachments are included to avoid processing delays. Send your completed form to the IRS Center in Ogden, UT.
