Form 3520-A Checklist: Tax Year 2025
Form 3520-A: Annual Information Return Requirements
Foreign trusts with at least one U.S. owner file Form 3520-A annually to report grantor trust status, distributions to U.S. beneficiaries, and trust income as required under section 6048(b).
The December 2025 continuous-use revision introduces guidance on proposed regulations that provide exemptions for certain tax-favored foreign trusts established to deliver pension, retirement, medical, disability, or educational benefits to eligible individuals.
Filing Checklist: 2025 Tax Year
1. Verify Filing Requirement
Confirm the foreign trust has at least one U.S. owner or is treated as a grantor trust under sections 671 through 679. Rev. Proc. 2020-17 and proposed section 1.6048-5 regulations, effective for tax years ending after May 8, 2024, exempt certain eligible individuals' transactions with tax-favored pension or retirement trusts. If your trust qualifies, no Form 3520-A may be required. FBAR and section 6038D reporting obligations remain unaffected.
2. Obtain Foreign Trust EIN
If the foreign trust lacks an EIN, apply online at IRS.gov/EIN or by phone at 267-941-1099 for international applicants with a principal place of business outside U.S. territories. The 2025 instructions confirm that an EIN is mandatory. Do not substitute an SSN or ITIN.
3. Designate and Authorize U.S. Agent
If you appoint a U.S. agent for 2025, execute a binding Authorization of Agent form signed by both the trustee and the agent, who must be a U.S. person, U.S. grantor, U.S. beneficiary, or domestic corporation controlled by the grantor or beneficiary. The agency relationship must be established by the time you file Form 3520-A, and the authorization form should be attached every three years or whenever a change occurs.
4. Assemble Required Attachments if No U.S. Agent
If the foreign trust does not appoint a U.S. agent, attach the following documents:
- A summary of trust terms, including oral agreements.
- A copy of all trust documents, including the trust instrument, memoranda of wishes, letters of wishes, and similar documents.
- A copy of the organizational chart showing ownership structure and percentages.
If these documents were attached to a Form 3520-A filed within the prior three years, attach only relevant updates.
5. Complete Part I: General Information
Enter the foreign trust's EIN on line 1b. Do not use an SSN or ITIN. On line 2, indicate whether the trust appointed a U.S. agent and enter the year the Authorization of Agent was last attached. On lines 3a through 3g, enter the U.S. agent's name, TIN, and address if appointed. On lines 5 and 6, enter the number of Foreign Grantor Trust Owner Statements on pages 3 and 4 and Foreign Grantor Trust Beneficiary Statements on page 5 included with the return.
6. Complete Part II: Foreign Trust Income Statement
Report all U.S. and non-U.S. source income using U.S. income tax principles as follows.
Income reporting includes the following items.
- Line 1: Report taxable interest from accounts, notes, loans, mortgages, Treasury instruments, original issue discount, and REMIC interest.
- Line 2: Report ordinary dividends.
- Line 5: Report capital gains or losses and use Schedule D and Form 8949 if applicable.
- Line 7: Include any portion of Form 1099-R treated as ordinary income.
Expense reporting includes the following items.
- Line 9: Report interest expense.
- Line 10a: Report foreign taxes.
- Line 10b: Report state and local deductible taxes and exclude federal income tax, estate tax, inheritance tax, and gift tax.
- Line 11: Report amortization and depreciation.
- Line 12: Report trustee and advisor fees.
- Line 13: Report charitable contributions under section 170(c).
- Line 14: Report other expenses.
7. Complete Part III: Foreign Trust Balance Sheet
List all trust assets and liabilities at fair market value, including assets attributable to portions not treated as owned by a U.S. person. Include certificates of deposit as cash on line 1. On line 18, report accumulated trust income not distributed. A book-to-tax basis reconciliation is not required.
8. Prepare Foreign Grantor Trust Owner Statement (Pages 3-4)
For each U.S. person treated as the owner of any portion of the trust under grantor trust rules, furnish and attach a separate Owner Statement showing the 2025 tax year or, for fiscal-year trusts, the calendar year in which the fiscal year begins. Complete the Statement of Foreign Trust Income Attributable to U.S. Owner with sufficient detail to allow the owner to report income and expenses on their U.S. return accurately.
9. Prepare Foreign Grantor Trust Beneficiary Statement (Page 5)
For each U.S. beneficiary receiving a distribution from the foreign trust during 2025, furnish and attach a separate Beneficiary Statement showing the 2025 tax year or, for fiscal-year trusts, the calendar year in which the fiscal year begins. List the beneficiary's full name, TIN, date of distribution, and fair market value on the distribution date, including any uncompensated use of trust property as a distribution.
10. Sign and Date Form 3520-A
The trustee of the foreign trust must sign the return, or if the trustee is a partnership, LLC, or corporation, an authorized partner, member, or officer signs on behalf of the entity. If a U.S. owner files a substitute Form 3520-A because the foreign trust failed to file, the U.S. owner signs and provides their name and TIN on the Title line.
11. File Form 3520-A by Deadline
Form 3520-A is due by the 15th day of the third month after the end of the foreign trust's tax year. A substitute Form 3520-A attached to a U.S. owner's Form 3520 is due on the same date as Form 3520. For individual calendar-year filers, this date is typically April 15. File Form 7004 using the foreign trust's EIN to request an extension of time to file Form 3520-A when necessary.
Exceptions and Special Rules
Rev. Proc. 2014-55 exempts certain Canadian retirement plans, including Canadian registered retirement savings plans and Canadian registered retirement income funds, from foreign trust information reporting requirements. Rev. Proc. 2020-17 provides similar exemptions for certain eligible individuals' transactions with tax-favored foreign trusts established exclusively or almost exclusively to provide pension, retirement, medical, disability, or educational benefits.
The exemptions from foreign trust information reporting described in Rev. Proc. 2014-55, Rev. Proc. 2020-17, and the proposed regulations under section 6048 do not affect reporting obligations under section 6038D or any other provision of U.S. law. You must still file FinCEN Form 114 if required under 31 U.S.C. section 5314 and its implementing regulations.
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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.
