IRS Form 3520 Annual Return To Report
IRS Form 3520 Annual Return To Report
IRS Form 3520 Annual Return To Report
1545-0159
c Number, street, and room or suite no. (if a P.O. box, see instructions) d Spouse’s identification number
i Check the box if you are married and filing a joint 2013 income tax return, but you are filing separate Forms 3520.
j Service center where U.S. person's tax return is filed . . . . . . . . . . . . . . . . . ▶
k If an extension was requested for the tax return, check this box and enter the form number of the tax return to be filed. ▶
2a Name of foreign trust (if applicable) b(1) Employer identification number (if any)
c Number, street, and room or suite no. (if a P.O. box, see instructions) b(2) Reference ID number (see instructions)
3 Did the foreign trust appoint a U.S. agent (defined in the instructions) who can provide the IRS with all relevant trust
information? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
If “Yes,” complete lines 3a through 3g. If “No,” be sure to complete Part I, lines 15 through 18.
3a Name of U.S. agent b Identification number (if any)
c Number, street, and room or suite no. (if a P.O. box, see instructions)
6a Country code of country where trust was created b Country code of country whose law governs the trust c Date trust was created
7a Will any person (other than the U.S. transferor or the foreign trust) be treated as the owner of the transferred assets after the transfer? Yes No
(i)
b Name of other (ii) (iii) (iv) (v)
foreign Relevant Code
trust owners, if any Address Country of residence Identification number, if any section
8 Was the transfer a completed gift or bequest? If “Yes,” see instructions . . . . . . . . . . . . . . Yes No
9a Now or at any time in the future, can any part of the income or corpus of the trust benefit any U.S. beneficiary? . . Yes No
b If “No,” could the trust be revised or amended to benefit a U.S. beneficiary?. . . . . . . . . . . . . Yes No
10 Will you continue to be treated as the owner of the transferred asset(s) after the transfer? . . . . . . . . . Yes No
Schedule A—Obligations of a Related Trust (see instructions)
11a During the current tax year, did you transfer property (including cash) to a related foreign trust in exchange for an
obligation of the trust or an obligation of a person related to the trust (see instructions)? . . . . . . . . . Yes No
If “Yes,” complete the rest of Schedule A, as applicable. If “No,” go to Schedule B.
b Were any of the obligations you received (with respect to a transfer described in 11a above) qualified obligations? . Yes No
If “Yes,” complete the rest of Schedule A with respect to each qualified obligation.
If “No,” go to Schedule B and, when completing columns (a) through (i) of line 13 with respect to each nonqualified
obligation, enter “-0-” in column (h).
(i) (ii) (iii) (iv)
Date of transfer giving rise to obligation Maximum term Yield to maturity FMV of obligation
12 With respect to each qualified obligation you reported on line 11b: Do you agree to extend the period of assessment of
any income or transfer tax attributable to the transfer, and any consequential income tax changes for each year that
the obligation is outstanding, to a date 3 years after the maturity date of the obligation? . . . . . . . . . Yes No
Note. Generally, you must answer “Yes” if you checked “Yes” to the question on line 11b.
Schedule B—Gratuitous Transfers (see instructions)
13 During the current tax year, did you make any transfers (directly or indirectly) to the trust and receive less than FMV,
or no consideration at all, for the property transferred? . . . . . . . . . . . . . . . . . . . Yes No
If “Yes,” complete columns (a) through (i) below and the rest of Schedule B, as applicable.
If “No,” go to Schedule C.
(f)
(d) (e) (g)
(b) Excess, if any, (i)
(a) (c) U.S. adjusted Gain recognized Description (h)
Description of column (c) Excess of
Date of FMV of property basis of at time of of property FMV of property
of property over the sum of column (c) over
transfer transferred property transfer, received, received
transferred columns column (h)
transferred if any if any
(d) and (e)
Totals ▶ $ $
14 You are required to attach a copy of each sale or loan document entered into in connection with a transfer reported on line 13. If these
documents have been attached to a Form 3520 filed within the previous 3 years, attach only relevant updates.
Attached Year
Are you attaching a copy of: Yes No Previously Attached
a Sale document? . . . . . . . . . . . . . . . . . . . . . .
b Loan document? . . . . . . . . . . . . . . . . . . . . . .
c Subsequent variances to original sale or loan documents? . . . . . . . . . .
Form 3520 (2013)
Form 3520 (2013) Page 3
Part I Schedule B—Gratuitous Transfers (Continued)
Note. Complete lines 15 through 18 only if you answered “No” to line 3, acknowledging that the foreign trust did not appoint a U.S. agent to
provide the IRS with all relevant trust information.
15 (c)
(a) (b) U.S. beneficiary? (d)
Name of beneficiary Address of beneficiary Identification number, if any
Yes No
18 If you checked “No” on line 3 (or did not complete lines 3a through 3g), you are required to attach a copy of all trust documents as indicated
below. If these documents have been attached to a Form 3520-A filed within the previous 3 years, attach only relevant updates.
Attached Year
Are you attaching a copy of: Yes No Previously Attached
a Summary of all written and oral agreements and understandings relating to the trust? . .
b The trust instrument? . . . . . . . . . . . . . . . . . . . . .
c Memoranda or letters of wishes? . . . . . . . . . . . . . . . . .
d Subsequent variances to original trust documents? . . . . . . . . . . . .
e Trust financial statements? . . . . . . . . . . . . . . . . . . .
f Other trust documents? . . . . . . . . . . . . . . . . . . . .
Schedule C—Qualified Obligations Outstanding in the Current Tax Year (see instructions)
19 Did you, at any time during the tax year, hold an outstanding obligation of a related foreign trust (or a person related to
the trust) that you reported as a “qualified obligation” in the current tax year? . . . . . . . . . . . . Yes No
If “Yes,” complete columns (a) through (e) below.
(e)
(c) (d) Does the obligation
(a) (b) still meet the
Amount of principal Amount of interest
Date of original Tax year qualified criteria for a
payments made during payments made during
obligation obligation first reported qualified obligation?
the tax year the tax year
Yes No
22 Did the foreign trust file Form 3520-A for the current year? . . . . . . . . . . . . . . . . . . Yes No
If “Yes,” attach the Foreign Grantor Trust Owner Statement you received from the foreign trust.
If “No,” to the best of your ability, complete and attach a substitute Form 3520-A for the foreign trust.
See instructions for information on penalties.
23 Enter the gross value of the portion of the foreign trust that you are treated as owning at the end of the tax year ▶ $
Part III Distributions to a U.S. Person From a Foreign Trust During the Current Tax Year (see instructions)
24 Cash amounts or FMV of property received, directly or indirectly, during the current tax year, from the foreign trust (exclude loans included on line 25).
(c) (d)
(e) (f)
(a) (b) FMV of property received Description of
FMV of property Excess of column (c)
Date of distribution Description of property received (determined on date of property transferred,
transferred over column (e)
distribution) if any
Totals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶ $
25 During the current tax year, did you (or a person related to you) receive a loan from a related foreign trust (including an
extension of credit upon the purchase of property from the trust)? . . . . . . . . . . . . . . . . Yes No
If “Yes,” complete columns (a) through (g) below for each such loan.
Note. You are considered to have received a loan if you (or a U.S. person related to you) were permitted the
uncompensated use of trust property (as described in section 643(i)). See instructions for additional information,
including how to complete columns (a) through (g) for such transactions.
(c) (e) (g)
(b) (d) Is the obligation a (f)
(a) Maximum term of Amount treated as distribution
Date of original Interest rate “qualified obligation?” FMV of qualified
FMV of loan proceeds repayment of from the trust (subtract
loan transaction of obligation obligation column (f) from column (a))
obligation Yes No
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶ $
26 With respect to each obligation you reported as a “qualified obligation” on line 25: Do you agree to extend the
period of assessment of any income or transfer tax attributable to the transaction, and any consequential income
tax changes for each year that the obligation is outstanding, to a date 3 years after the maturity date of the
obligation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
Note. Generally, you must answer “Yes” if you checked “Yes” in column (e) of line 25.
27 Total distributions received during the current tax year. Add line 24, column (f), and line 25, column (g) . . ▶ $
28 Did the trust, at any time during the tax year, hold an outstanding obligation of yours (or a person related to you)
that you reported as a “qualified obligation” in the current tax year? . . . . . . . . . . . . . . Yes No
If “Yes,” complete columns (a) through (e) below for each obligation.
(d) (e)
(b) (c) Does the loan still meet the
(a) Amount of
Tax year Amount of principal criteria of a qualified
Date of original loan interest payments
qualified obligation payments made during obligation?
transaction made during
first reported the tax year
the tax year
Yes No
33 Enter total distributions received from the foreign trust during the 3 preceding tax years (or during the number of
years the trust has been a foreign trust, if fewer than 3) . . . . . . . . . . . . . . . . . .
34 Multiply line 33 by 1.25 . . . . . . . . . . . . . . . . . . . . . . . . . . .
35 Average distribution. Divide line 34 by 3 (or the number of years the trust has been a foreign trust, if fewer than 3)
and enter the result . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36 Amount treated as ordinary income earned in the current year. Enter the smaller of line 31 or line 35. . . . .
37 Amount treated as accumulation distribution. Subtract line 36 from line 31. If -0-, do not complete the rest of Part III
38 Applicable number of years of trust. Divide line 32 by 2 and enter the result here . ▶
Schedule B—Actual Calculation of Trust Distributions (see instructions)
39 Enter amount from line 27 . . . . . . . . . . . . . . . . . . . . . . . . . .
40a Amount treated as ordinary income in the current tax year . . . . . . . . . . . . . . . . .
b Qualified dividends . . . . . . . . . . . . . . . . . . . ▶
41a Amount treated as accumulation distribution. If -0-, do not complete Schedule C, Part III . . . . . . . .
b Amount of line 41a that is tax-exempt . . . . . . . . . . . . . . ▶
42a Amount treated as net short-term capital gain in the current tax year . . . . . . . . . . . . . .
b Amount treated as net long-term capital gain in the current tax year . . . . . . . . . . . . . .
c 28% rate gain . . . . . . . . . . . . . . . . . . . . . ▶
If “Yes,” complete columns (a) through (c) with respect to each such gift or bequest in excess of $5,000. If more space
is needed, attach a statement.
(a)
(b) (c)
Date of gift
Description of property received FMV of property received
or bequest
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $ . . . . . . . ▶
55 During the current tax year, did you receive more than $15,102 that you treated as gifts from a foreign corporation or a
foreign partnership? See instructions regarding related donors . . . . . . . . . . . . . . . . . Yes No
If “Yes,” complete columns (a) through (g) with respect to each such gift. If more space is needed, attach a statement.
(d)
(a) (b) (c)
Identification number,
Date of gift Name of foreign donor Address of foreign donor
if any
(e)
Check the box that applies to the foreign donor (f) (g)
Description of property received FMV of property received
Corporation Partnership
56 Do you have any reason to believe that the foreign donor, in making any gift or bequest described in lines 54 and 55,
was acting as a nominee or intermediary for any other person? If “Yes,” see instructions . . . . . . . . . Yes No
Under penalties of perjury, I declare that I have examined this return, including any accompanying reports, schedules, or statements, and to the best of my
Sign knowledge and belief, it is true, correct, and complete.
Here
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