Form 3520-A (2013) Checklist
Filing Overview
Form 3520-A reports annual income, distributions, and assets of a foreign trust with U.S. owners or beneficiaries under IRC §6048(b). The foreign trust must file this return by the 15th day of the 3rd month after the end of the trust's tax year with the Internal Revenue Service Center in Ogden, Utah. Trustees must provide copies of the Foreign Grantor Trust Owner Statement and Foreign Grantor Trust Beneficiary Statement to each U.S. owner and beneficiary by the same deadline.
Filing Requirements and Document Preparation
Trust Identification Information
Complete Part I of Form 3520-A with the trust name, employer identification number, complete mailing address, trustee name and identification number, and trustee address. Enter the country of residence if the trust operates outside the United States. A reference ID number on line 1b(2) is required only when no EIN appears on line 1b(1), though filers may enter both an EIN and a reference ID number. The reference ID number must be alphanumeric with no special characters or spaces and must remain consistent across all future filings for the same trust.
U.S. Agent Appointment Decision
Determine whether the foreign trust appointed a U.S. agent under the 2013 instructions and complete lines 3a through 3g if an agent exists. A U.S. agent must have a binding contract with the foreign trust that authorizes the agent to respond to IRS requests to examine records or produce testimony.
Any U.S. citizen, resident alien, or domestic corporation may serve as the U.S. agent. The agency relationship must exist by the time Form 3520-A is filed and must continue as long as the statute of limitations remains open for the relevant tax year.
Trust Document Attachment Protocol
If the trust did not appoint a U.S. agent, attach copies of the summary of all written and oral trust agreements, the trust instrument, memoranda, or letters of wishes, subsequent variances to original documents, and other trust documents. Mark on lines 2a through 2e whether each document is newly attached or was previously attached. Documents attached to a Form 3520-A filed within the previous three years require only relevant updates rather than complete re-attachment.
Income Statement and Distribution Reporting
Part II Income and Expense Documentation
- Record gross income from interest, dividends, rents, royalties, and income from partnerships and fiduciaries on lines 1 through 4.
- Report net short-term capital gain or loss separately from net long-term capital gain or loss on lines 5a and 5b.
- Enter ordinary gains or losses from the sale or exchange of property other than capital assets on line 6.
- Deduct interest expense, foreign taxes, state and local taxes, depreciation, trustee fees, and charitable contributions on lines 9 through 14.
- Calculate net income or loss by subtracting total expenses from total income.
Distribution Disclosure Requirements
Enter the fair market value of total distributions to all persons on line 17a. List each U.S. owner and beneficiary receiving distributions separately on lines 17b and 17c with the recipient's name, identification number, distribution date, and fair market value. Prepare a separate Foreign Grantor Trust Owner Statement for each U.S. owner and a separate Foreign Grantor Trust Beneficiary Statement for each U.S. beneficiary who received distributions during the tax year.
Balance Sheet and Owner Statements
Part III Asset and Liability Valuation
Provide assets and liabilities at the beginning and end of the tax year using fair market value. Reconcile total assets to total liabilities plus net worth. Report depreciable assets net of accumulated depreciation and attach statements for nonmarketable securities and other assets that exceed the schedule space provided on the form.
Foreign Grantor Trust Owner Statement Preparation
The Foreign Grantor Trust Owner Statement on page 3 requires trust identification, U.S. owner identification, trustee appointment confirmation, and an explanation of the Code section establishing ownership. Report the gross fair market value of the owned portion and allocate income items, including taxable interest, tax-exempt interest, total ordinary dividends, and qualified dividends. The statement must separate ordinary dividends from qualified dividends to reflect proper tax treatment. Sign the statement under penalties of perjury and include it with the main form filing.
Foreign Grantor Trust Beneficiary Statement Completion
Page 4 requires trust identification, beneficiary identification, trustee appointment confirmation, trust tax year dates, and a description of distributed property with fair market value. If the trust did not appoint a U.S. agent, the statement must indicate whether the beneficiary and IRS may inspect permanent books of account and records. Attach an explanation of the Code section establishing that the trust is treated as owned by another person. Classify the beneficiary owner as an individual, partnership, or corporation.
Assembly and Signature Requirements
Final Review and Transmission
Confirm that a copy of each U.S. owner statement and each U.S. beneficiary statement is included with the Form 3520-A filing. The trustee must send separate copies directly to each U.S. owner and beneficiary by the filing deadline. Verify that all amounts appear in U.S. dollars and that all information is presented in English.
Execution and Filing Order
The trustee or authorized representative must sign, print their title, and date the form under penalties of perjury. Stack pages in order with Form 3520-A page 1, page 2, all Foreign Grantor Trust Owner Statements, all Foreign Grantor Trust Beneficiary Statements, and all referenced attachments. Number all pages and ensure legibility before mailing to the Internal Revenue Service Center in Ogden, Utah.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
