What IRS Form 3520-A (2024) Is For

IRS Form 3520-A is an annual information return that foreign trusts with at least one U.S. owner must file to provide the IRS with detailed information about the trust, its U.S. beneficiaries, and any U.S. person treated as an owner under federal grantor trust rules (IRS Instructions for Form 3520-A (2024)). Each U.S. person treated as an owner of any portion of a foreign trust is responsible for ensuring the foreign trust files this form and furnishes required annual statements to U.S. owners and beneficiaries.

When You'd Use Form 3520-A for 2024 (Late or Amended Filing)

You'll need to file Form 3520-A for 2024 in several late or amended filing scenarios. If you received IRS notices about missing Form 3520-A filings, you must respond promptly as penalties can exceed $10,000 or 5% of the trust's gross asset value. When a foreign trust fails to file, U.S. owners must complete a substitute Form 3520-A and attach it to their Form 3520 by the Form 3520 due date (typically April 15 for individuals) to avoid penalties. You may also need to file amended returns if previously filed forms contained errors or incomplete information, or if you're catching up on multiple unfiled years after discovering compliance obligations.

Key Rules Specific to 2024

The 2024 form reflects significant regulatory changes, most notably the IRS conversion to a "continuous-use" format rather than annual revisions, meaning forms and instructions are updated as needed throughout the year (IRS Instructions for Form 3520-A (2024)). The IRS must now enter the tax year at the top of the first page and all statements, with fiscal-year filers entering the tax year that begins the fiscal period. For calendar-year trusts, the 2024 Form 3520-A was due March 15, 2025 (extended to March 17 due to weekend), with extended deadline of September 15, 2025 if Form 7004 was timely filed.

Step-by-Step (High Level)

• Gather documentation: Obtain account transcripts from the IRS using Form 4506-T, collect all trust documents, financial statements, and correspondence about missing filings to understand your compliance history and current status.
• Complete the correct-year form: Use the 2024 version of Form 3520-A, ensuring you obtain an Employer Identification Number (EIN) for the foreign trust if one doesn't exist, and complete all required schedules and statements.
• Attach required schedules: Include Foreign Grantor Trust Owner Statements (pages 3-4) and Foreign Grantor Trust Beneficiary Statements (page 5), plus any supporting documentation like trust agreements or organizational charts.
• File appropriately: Mail completed forms to Internal Revenue Service Center, P.O. Box 409101, Ogden, UT 84409, or if filing a substitute form, attach it to your Form 3520; note that Form 3520-A cannot be filed electronically.
• Maintain records: Keep copies of all filed forms and correspondence, provide required statements to U.S. owners and beneficiaries, and document your reasonable cause explanation if filing late.

Common Mistakes and How to Avoid Them

• Using wrong identification numbers: Always use the foreign trust's EIN on line 1b, never a Social Security Number or Individual Taxpayer Identification Number, as this can cause processing delays and penalties (IRS Instructions for Form 3520-A (2024)).
• Missing or incomplete U.S. agent appointment: If the trust lacks a U.S. agent, attach all trust documents, organizational charts, and summaries of oral agreements; failure to do this properly can result in IRS redetermination of trust income.
• Incorrect due date calculations: Form 3520-A is due by the 15th day of the 3rd month after the trust's tax year end (March 15 for calendar-year trusts), which differs from Form 3520's April 15 individual deadline.
• Filing duplicate forms: Don't separately file a regular Form 3520-A if you're already filing a substitute Form 3520-A attached to Form 3520, as this creates processing confusion.
• Inadequate financial reporting: The income statement in Part II must reflect U.S. tax principles, not just foreign accounting standards, and must include all U.S. and foreign source income.
• Missing reasonable cause documentation: When filing late, always include a detailed explanation of reasonable cause circumstances, as the IRS has discretion to waive penalties for legitimate reasons beyond your control.

What Happens After You File

The IRS typically processes Form 3520-A within several months, though complex cases may take longer. You may receive correspondence requesting additional information, clarification of trust arrangements, or documentation supporting reasonable cause claims for late filing. If penalties are assessed, you have appeal rights and can request penalty abatement by demonstrating reasonable cause or filing Form 9465 for installment payment agreements if you cannot pay immediately (IRS Instructions for Form 3520-A (2024)). The IRS may also conduct examinations of the trust's U.S. tax compliance, particularly for multi-year late filings or complex trust structures. Keep detailed records of all communications as the statute of limitations remains open until complete and accurate forms are filed.

FAQs

What penalties apply for late-filed Form 3520-A?

The initial penalty equals the greater of $10,000 or 5% of the gross value of trust assets owned by the U.S. person, with additional penalties if noncompliance continues beyond 90 days after IRS notice (IRS Instructions for Form 3520-A (2024)).

Can I get transcripts for years when Form 3520-A wasn't filed?

Yes, request transcripts using Form 4506-T to understand your filing history, though transcripts will show "no record found" for unfiled years, helping you identify which years need attention.

Is there a statute of limitations for unfiled Form 3520-A?

No, the statute of limitations for assessment doesn't begin until a complete and accurate Form 3520-A is filed, meaning penalties can be assessed indefinitely for unfiled forms (IRS Instructions for Form 3520-A (2024)).

When should I file a substitute Form 3520-A instead of the regular form?

File a substitute form when the foreign trust refuses or fails to file Form 3520-A, attaching it to your Form 3520 by April 15 (for individuals) to avoid penalties for the trust's failure to file.

Do I need to amend state tax returns after filing Form 3520-A?

Form 3520-A is a federal information return only, but trust income reported may affect your state tax obligations depending on your state's conformity with federal trust taxation rules.

What's reasonable cause for late filing Form 3520-A?

Reasonable cause includes serious illness, natural disasters, or reliance on competent tax professional advice, but foreign legal restrictions or trustee reluctance generally don't qualify (IRS Instructions for Form 3520-A (2024)).

Can I request penalty abatement for multiple late years?

Yes, you can request abatement for each year with reasonable cause, though the IRS evaluates each year separately and may require different justifications for extended periods of noncompliance.

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