Who Needs IRS Form 3520?
Every U.S. citizen who owns a foreign trust or received a gift from a foreigner should file Form 3520. This document is also required for:
- Trust owners
- Trust distribution recipients
- Person who received a gift from foreigners
- Gift recipients from foreign corporations
What is IRS Form 3520 for?
Form 3520 is used to report transactions with foreign trusts and gifts that a US person has received from foreigners or foreign corporations during the current tax year. An important fact is that each foreign transaction with a trust should be reported on a separate Form 3520.
Is IRS Form 3520 Accompanied by other Forms?
Form 3520 isn’t accompanied by other documents. But it has a number of obligatory attachments. The full list of attachments can be found on the IRS website. There is also an opportunity for two transferors of the same trust to file a joint Form 3520.
When is IRS Form 3520 Due?
Form 3520 is filed simultaneously with an individual income tax return. If the form is filed on behalf of a decedent then its due date is the same as the due date of Form 706. All the time extensions are included in the deadlines.
How do I Fill out IRS Form 3520?
Form 3520 is a six-page document that is comprised of five parts and some schedules. The minimum amount of information that has to be provided in the form is:
- The filer’s identification information, address, Identification number
- Transfers to foreign trusts
- Distributions from a foreign trust
- Owner of the foreign trust
Every part contains some fields. There is an explanation for each field.
Where do I Send IRS Form 3520?
Once the form is completed, it is sent to the IRS.