Form 3520

Form 3520

After a long one more form on the plate that is form 3520, it's just a simple Informational reporting Return that needs to be filed.

Who needs to file :

1.?????? US owner of a foreign trust

2.?????? Make certain transactions with a FT

3.?????? Receive large gifts or inheritances from certain overseas persons

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1.?????? To report certain transactions with foreign trusts, ownership of foreign trusts

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Certain Transactions with Foreign Trust

·???????? Transfer any asset to the foreign trust

·???????? Receive direct or indirect Distributions from Foreign trust

·???????? Having a qualified obligation as the responsible party to report a reportable event

Qualified Obligation:

·???????? Written Agreement

·???????? Term not exceeding 5 years (Including renewal)

·???????? Denominated in US Dollar

·???????? YTM is not less than 100% of the federal rate

·???????? The U.S. person agrees to extend the period for assessment of any income or transfer tax attributable to the transfer and any consequential income tax changes for each year that the obligation is outstanding to a date not earlier than 3 years after the maturity date of the obligation,

·???????? ?The U.S. person reports the status of the obligation, including principal and interest payments.

Responsible Party:

·???????? The Grantor in case of creation of trust

·???????? The transferor in case of reportable event

·???????? The executor of the decedent’s estate

Reportable Event

·???????? Creation of foreign trust by a U.S. Person

·???????? Transfer of any money or property to Foreign trust by US Person (incl. reason of transfer of death)

·???????? Death of US Citizen or resident,(if descendant was owner of any portion of FT or any portion of FT was included in the gross estate of the decedent

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2.?????? To report receipt of certain large gifts from certain foreign persons

So for gifts, there is some limit for reporting if received more than below mentioned only then needs to report in form 3520

·???????? A gift of more than $100,000 from a foreign person or estate

·???????? A gift of more than $15,601 from a foreign partnership or corporation

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