What IRS Form 3520-A (2017) Is For

Form 3520-A (2017) is the annual information return that foreign trusts with U.S. owners must file to provide the IRS with detailed information about trust activities and operations. The form helps U.S. owners of foreign trusts satisfy their annual reporting requirements under section 6048(b), ensuring proper oversight of foreign trust transactions and distributions (IRS Instructions for Form 3520-A (2017)).

When You'd Use Form 3520-A for 2017 (Late or Amended Filing)

You might need to file a late or amended Form 3520-A (2017) if you:

• Received IRS notices about missing foreign trust reporting
  
  
• Discovered unreported foreign trust ownership during a tax examination
  
  
• Found errors or omissions in an originally filed return
  
  

Late filings are common when taxpayers only become aware of their U.S. ownership status years later, often through IRS compliance campaigns or voluntary disclosure programs. Since Form 3520-A is an information return, the main concern is penalty abatement, not refunds.

Key Rules Specific to 2017

• Due date: 15th day of the 3rd month after the trust’s tax year end (March 15, 2018, for calendar-year trusts).
  
  
• Penalty structure: Greater of $10,000 or 5% of the gross value of trust assets treated as owned by the U.S. person.
  
  
• Extensions: Required Form 7004, but only available if the trust had an EIN.
  
  
• Filing requirement: Each trust must file separately; Form 3520-A is not part of your income tax return.
  
  

Step-by-Step (High Level)

• Gather Documentation: Get IRS account transcripts and collect all trust financial statements and records for 2017.
• Complete the 2017 Form: Use the official 2017 version of Form 3520-A with a valid trust EIN.
• Attach Required Schedules: Include the Foreign Grantor Trust Owner Statement (page 3) and Beneficiary Statement (page 4). File substitute forms if the trustee did not file.
• File with Correct Address: Mail to IRS Service Center, P.O. Box 409101, Ogden, UT 84409.
• Maintain Records: Keep copies of all submissions and IRS correspondence.

Common Mistakes and How to Avoid Them

• Using wrong IDs: Always use the trust’s EIN, not the U.S. owner’s SSN or ITIN.
  
  
• Incorrect substitute filings: Attach substitute Form 3520-A to Form 3520, don’t mail it separately.
  
  
• Missing signatures: Ensure authorized trust representatives sign and date the form.
  
  
• Incomplete entity details: Fill in trust details (lines 1a–1h) and complete U.S. owner info (page 3, lines 6a–6g).
  
  
• Extension errors: EIN required before requesting extension with Form 7004.
  
  
• Wrong filing location: Must go to IRS Ogden Service Center, not with your income tax return.
  
  

What Happens After You File

• Processing time: Several months.
  
  
• IRS response: May send acknowledgment or request more information.
  
  
• Penalties: Can request penalty relief by demonstrating reasonable cause.
  
  
• Payments: If penalties apply, request installment agreements using Form 9465.
  
  
• Appeals: Standard appeal rights apply; the Taxpayer Advocate Service may help if hardship arises.
  
  

FAQs

Can I still file Form 3520-A for 2017 even though it's years late?

Yes. There’s no deadline preventing late filing of information returns, though penalties may apply unless you show reasonable cause.

What penalties will I face for filing 2017 Form 3520-A late?

Greater of $10,000 or 5% of trust assets treated as owned by you, plus additional penalties if not filed after IRS notice (IRC Section 6677).

Do I need account transcripts before filing a late Form 3520-A?

Not required, but recommended to verify IRS records and avoid duplicate filings.

If the foreign trustee never filed, what should I do?

File a substitute Form 3520-A attached to Form 3520 to satisfy reporting requirements.

Can I get an installment agreement for penalties?

Yes, you can use Form 9465 to set up a payment plan. Interest continues to accrue.

Should I amend my state returns after filing late?

Generally no, since Form 3520-A is federal informational reporting. Check state-specific rules.

What’s considered “reasonable cause” for penalty relief?

Examples: inability to obtain information from foreign trustees, reliance on competent tax advice, or circumstances beyond your control. Lack of knowledge of the rules alone usually doesn’t qualify.

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