Who must file a Form 3520-A?

A foreign trust with a U.S. owner must file Form 3520-A in order for the U.S. owner to satisfy its annual information reporting requirements under section 6048(b).

What is substitute 3520-A?

If a foreign trust fails to file Form 3520-A, the U.S. owner must complete and attach a substitute Form 3520-A for the foreign trust to the U.S. owner’s Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts, by the due date of the U.S. owner’s Form 3520 (and not the …

What is the difference between 3520 and 3520-a?

Generally, Form 3520 is a filing required of the recipient of foreign assets, and Form 3520-A is an additional, less commonly required form that is submitted by a trustee when there are beneficiaries or owners of the trust that are U.S. taxpayers.

How do I extend my 3520-A?

If the trust has a calendar-year tax year, the Form 3520-A is due by March 15. The deadline for Form 3520-A can be extended by timely filing Form 7004, “Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns.”

Do you have to file 3520 every year?

A foreign grantor trust has an obligation to file Form 3520-A each year if the grantor-owner is a U.S. person (Sec. 6048(b)). Assuming a calendar-year-end taxpayer, the Form 3520-A is due March 15 of the year following the calendar year for which the U.S. person grantor is reporting. The return can be extended to Sept.

Does Form 3520 require a separate extension?

Form 3520 Complicates Tax Extension Filing If they are going to have to request an extension to file it after the original due date, it may be beneficial to the taxpayer to file a form 4868 and use that method to apply for an extension — and attach a copy of the extension to the actual form to the 3520 Form.

Do I file Form 3520 with my tax return?

File Form 3520 separately from your income tax return by following the directions in the Instructions to the Form 3520. In general, the due date for a U.S. person to file a Form 3520 is the 15th day of the 4th month following the end of the U.S. person’s tax year.

How do I report inheritance from a foreign country?

It is essential to properly file a timely IRS Form 3520 to report a foreign inheritance or foreign gift received by a U.S. person as large penalties may be imposed on a taxpayer if the IRS later discovers that an inheritance was not properly declared when received using Form 3520.

Can you file 3520 separately?

Do you file 3520 with 1040?

Forms 3520-A and 3520 are separate filings and are not attached to the Form 1040, U.S. Individual Income Tax Return. Form 8938, Statement of Specified Foreign Financial Assets, may report foreign trusts, and that form is attached to Form 1040.

Do you have to declare foreign inheritance?

Do I need to report foreign inheritance or gifts? If you receive an inheritance from a foreign estate or non-resident alien, or gifts from non-resident aliens exceeding $100,000 (USD), then it must be reported to the IRS. This includes the total of all foreign inheritance or gifts received.

What happens if I inherit money from overseas?

If you are living in the United States and you receive an inheritance from overseas, both state and federal estate taxes might apply, and you will be required to declare any assets that are transferred from outside of the country into your local bank account.